Federal Reserve Bulletin, 1975-03

M A R C H 1975 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUM BER 3 □ VO LU M E 61 □ M ARCH 1975 C O N T E N T S 121 Financial Developments A 1 Financial and Business Statistics in the Fourth Quarter of 1974 A 1 Contents 129 Survey of Bank Response to A 3 Guide to Tabular Presentation Federal Advisory Council Statement A 3 Statistical Releases: Reference on Lending Policies A 4 U.S. Statistics A 60 International Statistics 131 Treasury and Federal Reserve Foreign Exchange Operations A 84 Board of Governors and Staff 150 Statements to Congress A 86 Open Market Committee and Staff; Federal Advisory Council 167 Law Department A 87 Federal Reserve Banks and Branches 183 Announcements A 88 Federal Reserve Board Publications 185 Industrial Production A 90 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover E D IT O R IA L C O M M IT T E E J. Charles Partee Lyle E. Gramley Robert Solomon Ralph C. Bryant Joseph R. Coyne Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the Fourth Quarter o f 1 9 7 4 This report, which was sent to the Joint Eco­ December in recognition of the decline that had nomic Committee of the U.S. Congress on Feb­ already occurred in market rates of interest; in ruary 22, 1975, highlights the important devel­ January and again in early February, as it be­ opments in financial markets during the fall and came evident that the economy was weakening early winter. still further, the discount rate was reduced in two steps to 6% per* cent. Credit conditions eased substantially in the The Board also reduced member bank reserve fourth quarter of 1974 and in the early weeks requirements in order to provide banks with of 1975. Yields on most private money market additional lendable funds. In November it pro­ instruments dropped 4 to 5 percentage points mulgated a set of changes in reserve require­ between September 1974 and January 1975, in ments that released $700 million in required part because of an easing of private demands reserves. These changes included a reduction of for short-term credit but also because of efforts V2 of a percentage point in the requirement on by the Federal Reserve to ease bank reserve net demand deposits aggregating over $400 positions through reductions in reserve require­ million, the elimination of the remaining mar­ ments and in the discount rate and through open ginal reserve requirement for large-denomi­ market operations. Longer-term rates registered nation time deposits, and a restructuring of the only modest declines, reflecting the intense de­ basic reserve requirement on time deposits. The mands for intermediate- and long-term financing last of these changes, which set a lower re­ and the continued concern of investors about quirement on deposits with original maturities the high rate of inflation. of at least 180 days than the requirement on In general, declines in domestic interest rates shorter-term deposits, was designed to provide during recent months have been significantly an incentive for banks to improve their liquidity larger than declines in interest rates abroad. This by lengthening the maturity of their liabilities. widening spread contributed to a deterioration In January 1975 the Board again lowered in capital inflows to the United States and to reserve requirements on net demand deposits— a continued weakening in the exchange rate for by 1 percentage point on deposits over $400 the dollar against leading foreign currencies million and by V2 of a percentage point on all over the fourth quarter and into early 1975. deposits of less than that amount. This action Federal Reserve policy during this period was lowered the total required reserves of member aimed at fostering conditions of bank reserve banks by about $1.1 billion. availability that would lead to an easing of credit Growth in the various monetary aggregates conditions and an improvement in the liquidity accelerated in the fourth quarter. The narrowly of banks and other financial institutions, and that defined money stock, M1? increased at an annual would also lay the basis for more rapid growth rate of 4.6 per cent, as compared with a growth in the family of monetary aggregates. In addi­ rate of 1.6 per cent over the third quarter; the tion to providing for a substantial expansion of more broadly defined money stock measures, nonborrowed reserves through open market M2 and M3, grew at annual rates of 7.0 and operations, the System lowered the cost of bor­ 6.9 per cent, as compared with rates of 4.5 and rowing at Reserve Banks. The discount rate was 4.0 per cent, respectively, in the third quarter. cut from 8 per cent to 7% per cent in early As shown in Table 1 on page 123, the changes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin □ March 1975 INTEREST RATES SHORT-TERM LONG-TERM Federal funds Commercial paper 4-6 month Aaa utility New issue Conventional mortgages > HUD / Treasury bills 3-month F.R, discount rate State and local government * Level of series was affected by issue of new 20-year U.S. Govt, bond in January 1973. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commer­ cial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept, of Housing and Urban Development; Corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. in the rates of growth of the monetary aggre­ cial banks borrow reserve balances overnight gates were somewhat smaller when measured from other banks—from a monthly average of on a quarterly average basis. 11.34 per cent in September to 8.53 per cent During the last few weeks of 1974 and in in December, and then to about 6.5 per cent early 1975, demand deposits held by the public in early February. There was a considerable contracted as businesses and consumers repaid acceleration in the rate at which nonborrowed bank loans. This led to a decline in in reserves were provided to the banking system January, but because expansion in time and through open market operations. Over the 4 savings deposits held by the public was main­ months ending in January, such reserves in­ tained at a fairly rapid rate throughout the creased at an annual rate of about 20 per cent, month, M2 continued to rise at a pace only after adjustment to eliminate the effect on the moderately below that of the fourth quarter of figures of the large increase in late spring and 1974. subsequent decrease in early fall of special bor­ rowing by Franklin National Bank. As nonbor­ rowed reserves became increasingly available MEMBER BANK and short-term market interest rates dropped, RESERVES member banks sharply reduced their borrowings from the Federal Reserve. As a result, total The easing of pressures on member bank reserve reserves of member banks expanded at an an­ positions was reflected in the decline in the nual rate of about 4.5 per cent over the 4 months Federal funds rate—the rate at which commer­ ending in January. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial D evelopm ents, Q4 1974 123 TABLE 1 Changes in selected monetary aggregates1 In per cent, seasonally adjusted annual rates 1974 Item 1973 1974 Qi Q2 Q3 Q4 Member bank reserves: 2Sill; ‘ Total ............................................................... 7.8 8.6 1.3 20.1 8.2 4.2 Nonborrowed ............................................... 7.2 10.6 1.2 8 5.6 34.4 Available to support private nonbank deposits2 ................................. 9.3 8.8 5.7 19.1 9.1 0.7 Concepts of money8 calculated from: End-month of quarter— Mi .................................................................... 6.1 4.7 5.5 7.0 1.6 4.6 Mk .................................................................... 8.8 7.4 9.3 7.9 4.5 7.0 Mi .................................................................... 8.7r 6.7 8.8 6.6r 4.0 6.9 Quarterly average— ■ I M l i i l Mx .................................................................... 6.3 5.3 5.8 7.3 3.9 3.7 Mo . .... ............................................... 8.9 7.9 9.6 8.3 6.2 6.6 M3 ................................................................... 8.9 7.1 ^.1 7.4 5.2 6.0 Time and savings deposits at: y-vr ; C'C'®1 Commercial banks (other than large CD’s) .................................................. 11.4 9.7 12.8 8.8 7.1 9.0 8.5r 5.6 7.9 3.9 3.1 6.9 : Bank credit proxy, adjusted4 ......................... 10.4 10.2 8.2 20.4 6.6 4.3 Currency and privately held 4 bank deposits .... ................................... 11.6 10.8 10.9 15.4 6.0 9.2 Memo; d (C ol h l a a n rs g , e s i e n a s b o i n ll a i l o l n y s a o d f justed): 111! Large CD’s ...................................................... 19.9 26.5 4.2 13.3 3.5 5.5 U.S. Government demand deposits at all member banks ............................... -1.7 -2.0 -.7 2.1 1.0 -4.4 ............... _ incorporates revisions in money stock and related measures based on new benchmark data for nonmember banks from the recently available October 16 Reports of Condition and revisions in seasonal adjustment factors. These data were first published on February 20, 1975. 2Total reserves less required reserves for U.S. Govt, and interbank deposits. 3Afx is currency plus private demand deposits adjusted. Af2 is Mx plus commercial bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 4 Total member bank deposits plus funds provided by Euro-dollar borrowings and bank related commercial paper. rRevised after the report was sent to the Joint Economic Committee. No revision was more than two-tenths of a percentage point. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter, except the quarterly average calculations of concepts of money, which are based on changes in the average amounts outstanding for a quarter. Annual rates of growth have been adjusted for changes in reserve requirements. DEPOSIT sistent with the rise in nominal consumption FLOWS expenditures resulting from an unusually high rate of inflation. Over the year 1974, Mx rose Measured on an end-month-of-quarter basis, the 4.7 per cent as compared with an increase of annual rate of increase in Mx rose from 1.6 per 6.1 per cent in 1973. cent in the third quarter to 4.6 per cent in the The more rapid growth of time and savings fourth quarter. In both periods most of the deposits at both commercial banks and nonbank growth in Mt was associated with a rise in the thrift institutions in the fourth quarter reflected currency component of the money stock; the the retreat of short-term market interest rates change in demand deposits was small. The from the high levels that had encouraged diver­ sustained and rapid growth in the public’s hold­ sion of savings flows into market instruments ings of currency throughout 1974, though it may during the summer. The rate of increase in time have reflected some hoarding, was broadly con­ and savings deposits other than large negotiable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin □ March 1975 CONCEPTS OF MONEY to stimulate savings flows, the Federal regula­ tory agencies established in late December a new category of consumer-type time deposits called Investment Certificates to be offered in a minimum denomination of $1,000 and with a minimum maturity of 6 years. Insured com­ mercial banks are authorized to pay up to IV2 per cent on such deposits; insured nonbank thrift institutions may pay 13A per cent. The interest rate ceilings on these Investment Certificates are higher than ceiling rates on other deposit instru­ ments and are intended to make such deposits more competitive with market instruments. BANK CREDIT AND COMMERCIAL PAPER Total loans and investments at commercial banks declined $4.8 billion on a seasonally Seasonally adjusted monthly averages. adjusted basis over the October-December Mx is currency plus private demand deposits adjusted. M2 is Mi plus commercial bank time and savings deposits period. Seasonally adjusted, commercial bank adjusted other than large CD’s. holdings of Treasury securities declined sub­ M3 is M2 plus deposits at mutual savings banks and savings and loan associations. stantially in the fourth quarter, and although bank holdings of other securities—mainly mu­ certificates of deposit (CD’s) at commercial nicipal bonds and Federal agency issues—inbanks rose from an annual rate of 7.1 per cent in the third quarter to 9.0 per cent in the fourth. BANK CREDIT As a result, growth of M2 increased from an COMPONENTS annual rate of 4.5 per cent in the third quarter Change, billions of dollars to 7.0 per cent in the fourth quarter, on an U.S. GOVT. SECURITIES end-month-of-quarter basis. Inflows to nonbank thrift institutions, which had been at an annual rate of only 3.1 per cent in the third quarter, grew at a 6.9 per cent rate in the fourth quarter. The measure of the money stock that includes such flows, M3, increased at a 6.9 per cent rate in the final quarter of the year as compared with a 4.0 per cent rate in 20 the third quarter. Late in the fourth quarter two changes were 16 made in regulations governing deposit structures 12 of both banks and nonbank thrift institutions. 8 First, in late November, Federal legislation was 4 passed that increased deposit insurance on indi­ + 0 vidual accounts to $40,000 and on accounts of governmental units to $100,000; at the same 4 1973__________1974_____________ time, the Federal Reserve authorized commer­ cial banks to issue savings deposits to govern­ Seasonally adjusted. Loans adjusted for transfers between banks and their holding companies, affiliates, subsidiaries, or mental units for the first time. Second, in order foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial D evelopm ents, Q4 1974 125 TABLE 2 Rate spreads and changes in business loans and commercial paper Spread (basis Change (billions of dollars)1 Annual points)— Business percentage Period prime rate less loans Dealer- rate of 30- to 59-day at all placed Total change commercial commercial commercial in total paper rate banks2 paper3 amount 1 Seasonally adjusted. 2 Based on last-Wednesday-of-month data; adjusted to include outstanding amounts of loans sold to affiliates. 3Measured from end-of-month to end-of-month. creased by slightly more than $2 billion, total ness loans and of nonfinancial commercial paper investments of commercial banks declined on increased moderately in October and November a seasonally adjusted basis. but fell sharply in December. Over the Octo­ Total loans outstanding at commercial banks ber-December period as a whole, total short­ also declined during the fourth quarter by $3.6 term business credit grew by only 2.5 per cent, billion on a seasonally adjusted basis. This was significantly below the rate of increase in the in sharp contrast with previous quarters in 1974 first three quarters of the year. when loan portfolios had expanded rapidly. Real Consumer credit outstanding at banks showed estate loans grew somewhat more slowly in the almost no change in October and then declined October-December period, and there were de­ in November and December as sales of con­ clines in outstanding amounts in several major sumer durable goods weakened further. The loan categories—consumer, security, and non­ growth of real estate loans at banks slowed to bank financial borrowings. Continuation of rel­ an annual rate of 5 per cent in the fourth quarter, atively restrictive lending policies by banks, the weakness of economic activity, and the desire of firms to improve balance sheets by substitut­ BANK LOANS ing long-term for short-term debt contributed to MAJOR COMPONENTS the slowing of business loan growth from a ^^^^^^Chanee^ilHwis of dollars seasonally adjusted annual rate of 6.2 per cent BUSINESS n in the third quarter to virtually no growth in r—i the fourth quarter. This weakness in business loans continued to be evident in the early weeks n i 1 of 1975. REAL ESTATE ULn □ Between September and December, commer­ .eh.....m .... cial paper rates declined from just over 11 per CONSUMER cent to about 9 per cent and then dropped to FT! r-i -— i 6 per cent by early February of this year. i Meanwhile, the commercial bank prime rate fell NONBANK FINANCIAL from 12 per cent to around 9 per cent. Although the spread between the prime rate and commer­ wm cial paper rates widened somewhat during the 04 i Q1 Q2 Q3 04 1973__________1974 fourth quarter, there was little change in the volume of commercial paper issued by nonfi­ Seasonally adjusted. Business loans adjusted for transfers be­ tween banks and their holding companies, affiliates, subsidi­ nancial businesses. The combined total of busi­ aries, or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 Federal Reserve Bulletin □ March 1975 reflecting the continued deterioration of resi­ had been drawn down in earlier months, greatly dential housing activity. With consumer pur­ reduced their reliance on nondeposit sources of chases of durable goods and consumer credit funds, and repaid some short-term bank loans. needs declining, credit demands of finance Although member institutions continued to bor­ companies lessened and outstanding bank loans row from the Federal home loan banks in to nonbank financial institutions declined response to advances offered at below-market sharply in December, resulting in a reduction rates, they repaid borrowings that had been in outstanding amounts over the quarter as a made earlier at nonsubsidized rates. The net whole. result was a smaller increase in Federal home loan bank advances outstanding in the fourth quarter than in the preceding period. And in NONBANK INTERMEDIARIES January there were substantial repayments of such advances. Outstanding mortgage loan AND THE MORTGAGE MARKET commitments at thrift institutions continued to Deposit flows at nonbank thrift institutions im­ decline—but at a decelerating rate—in the proved significantly throughout the fourth fourth quarter as the volume of new commit­ quarter, as generally lower market interest rates ments picked up somewhat in November and reduced pressures toward disintermediation. December. During the summer deposit withdrawals had Reflecting the reductions in loan commit­ exceeded inflows of new money at mutual sav­ ments in earlier quarters, net mortgage lending ings banks and savings and loan associations; by thrift institutions declined further in the this pattern was reversed in the final 3 months fourth quarter, and net mortgage debt formation of the year. The bulk of thrift deposit inflows slowed to the lowest rate since early 1971. in the fourth quarter—as in most periods in Support operations by the Federally sponsored recent years—took the form of time certificates, credit agencies—including purchases of loans which pay higher rates than passbook savings under several housing-support programs enacted accounts; but regular savings deposits also rose, earlier in the year and indirect support in the in contrast to the reductions in such balances form of subsidized advances to savings associa­ that had occurred during the summer and early tions by Federal home loan banks—accounted fall. for the financing of a substantial portion of the With improved deposit inflows, thrift institu­ total net change in mortgage debt. tions rebuilt their liquid asset portfolios, which Accompanying the stronger deposit perform- TABLE 3 Net change in mortgage debt outstanding In billions of dollars, seasonally adjusted annual rates 1973 1974 Change— Q4 Ql Q2 Q3 ] Q4e By type of debt: Total .................................................... 58 59 65 50 39 Residential ................................... Other1 ............................................. 20 ?9 21 16 14 At selected institutions: Commercial banks ........................ Mutual savings banks .................. Insurance companies ..................... FNMA-GNMA ............................... Memo: FHLB advances to S&L’s 3 6 10 6 4 1 Includes commercial and other nonresidential as well as farm properties. 2 Less than 0.5. ePartially estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial D evelopm ents, Q4 1974 127 ance of nonbank institutions in the fourth quarter TABLE 4 and the downward movement of other market Offerings of new security issues rates, mortgage yields declined gradually from In billions of dollars, seasonally adjusted annual rates October through the year-end. Average interest 1973 1974 rates on new commitments by savings and loan Type of issue Q4 Ql Q2 Q3 Q4e associations for conventional home mortgages Corporate securities— dropped from just over 10 per cent in October Total ......................... 38 38 34r 36r 45 to about 914 per cent by early February. In the Bonds ............................. 26 30 29T 29r 38 Stocks ............................. 12 8 5 7r 7 secondary market, average auction yields on State and local forward-purchase commitments of the Federal government bonds 26 23 27r 19r 23 National Mortgage Association on Govern­ c Estimated. ment-underwritten mortgages declined from r Revised. more than 10^2 per cent in September to about 9V2 per cent in December, and fell to 9V8 per preponderance of long-term debt issues in the cent in late January. By administrative action third quarter, also borrowed very heavily in the ceiling rate on residential mortgages insured October. Although a large communications firm by the Federal Housing Administration and postponed a sizable offering in November, bor­ guaranteed by the Veterans Administration was rowings by the utilities returned to more normal reduced Vi of a percentage point in November seasonal levels in the last 2 months of the year. and another Vi point in late January, to a level In contrast to the large bond volume, stock of 8V2 per cent. issuance in the fourth quarter continued to be light. Share prices remained depressed through­ NONBANK SAVINGS ACCOUNTS out the period, thus maintaining the high cost of equity financing. Stock prices rose substan­ jnt 12 tially in the early weeks of 1975, but the leading indexes were still about 30 per cent below their 8 1973 peaks. 4 Despite the large volume of offerings in cor­ porate bond markets, favorable reactions by 0 investors to several highly rated bond issues contributed to a sharp decline in corporate yields Seasonally adjusted. Changes based on month-end figures. early in the fourth quarter. The average rate on new Aaa-rated utility issues, which had reached a peak of over IOV2 per cent early in October, SECURITIES MARKETS had declined by almost 2 percentage points by mid-November. The drop in bond rates was not The gross volume of long-term corporate debt sustained over the remainder of the quarter, issued in the fourth quarter of 1974 totaled $38 however, largely because of the growing vol­ billion, at a seasonally adjusted annual rate, the ume of new corporate issues coming to the second largest volume on record for any 3- market. Consequently, between November and month period. The heaviest borrowers in the December the yield on new issues edged back bond market were industrial corporations, which up to 9Vi per cent, erasing half of the decline sought funds with which to pay down short-term that had occurred early in the quarter. debt and to finance capital expenditures. Some Simultaneously, greater selectivity on the part of these firms had postponed bond issues earlier of market participants and concern on the part in the year in the expectation that yields would of some investors about the impact of the slow­ turn down, and they came to the market in the ing in economic activity on corporate earnings fourth quarter when credit market conditions resulted in a widening of the spread between began to ease. yields on highest quality bond issues and those Public utilities, which had accounted for the on lower-rated obligations. In January the bond Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 Federal Reserve Bulletin □ March 1975 TABLE 5 Federal Government borrowing and cash balance Quarterly totals, in billions of dollars, not seasonally adjusted 1973 1974 Item Q4 Ql Q2 Q3 Q4 Treasury financing: Budget surplus, or deficit . -5.0 -7.1 9.1 -1.6 -12.0 Net cash borrowings, or r repayments ( —) .......... 6.7 3.4 -6.4 4.5 10.3 Other means of financing1 .4 1.7 -2.5 -3.4 -1.1 Change in cash balance ... 2.1 -2.0 .8 -.5 -2.8 Federally sponsored agencies, net cash borrowings ............ 3.2 5.5 7.7 3.4 Memo: Net cash borrowings by Treasury, seasonally ad­ 1 ,' -V; ■ justed annual rate ........... 6 14 18 Net cash borrowings by Federally sponsored credit agencies,2 seasonally adjusted annual rate 15 20 25 17 1 Checks issued less checks paid, outlays of off-budget Federal agencies, accrued items, and other transactions. 2Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and securities guaranteed by GNMA). market continued to face a heavy calendar of tone of the market for New York City obliga­ current and prospective new issues; but in spite tions deteriorated considerably. of the considerable uncertainty that permeated The market improved somewhat in January, the market, there was a moderate decline in when New York City took measures to improve yields, and the issues offered were readily ab­ its fiscal position and rescheduled its calendar sorbed. By early February new-issue yields had of future debt issues. By early February mu­ fallen to about 9 per cent. nicipal rates had declined by another 3A of a While corporate and other market rates de­ percentage point, but investors continued to clined on balance in the fourth quarter, a com­ show their preference for high-quality munici­ bination of factors created upward pressures on pals—demanding large premiums on lower­ yields in municipal markets. First, the volume rated issues. of State and local government issues was larger The U.S. Treasury increased its net cash in the fourth quarter than it had been in the borrowing somewhat more than seasonally in preceding period. Second, two of the traditional the fourth quarter to finance an enlarged deficit institutional buyers of tax-exempt issues—com­ of just under $12 billion. The market impact mercial banks and casualty insurance compa­ of the increased Treasury financing was partially nies—showed only modest interest in acquiring offset, however, by a reduction in net borrowing long-term issues. Finally, municipal markets by Federally sponsored credit agencies, as the were disturbed by increasing concern over the needs of these agencies for funds declined in financial position of New York City, which had reflection of improved deposit inflows at thrift difficulty marketing a bond issue in October and institutions. In line with the easing stance of then in December was forced to pay the highest monetary policy and the reduction in demands rate of return on a note issue—9.5 per cent—in for short-term credit, pressures in Government the city’s history. Throughout the year New securities markets moderated and rates on York City had been issuing a substantial amount Treasury bills and the yield on longer-term of debt (the city accounted for almost 30 per coupon issues both trended downward in the cent of total short-term debt issued in the tax- fourth quarter. In early February the bill rate exempt sector), and as reports of the city’s stood at 5% per cent, about a percentage point potential fiscal problems were made public, the below its lowest level in 1974. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

129 Survey o f Bank Response to Federal Advisory Council Statement on Lending Policies In January of this year a questionnaire on lend­ Most of the banks indicated in their responses ing policies was sent to a panel of 125 large that they either had transmitted the FAC state­ commercial banks. This questionnaire was de­ ment directly to their loan officers or had issued signed to ascertain bank response to the state­ specific guidelines to implement the policies ment on bank lending policies issued by the discussed in the statement. And a number of Federal Advisory Council in September 1974 banks reported that they had previously issued (see Sept. Bulletin, pp. 679-80). The survey similar policy lending guidelines of their own results are summarized in Tables 1 and 2. to loan officers. TABLE 1 Bank responses to credit allocation questions, December 1974 compared with same month in preceding years Number of banks; Figures in parentheses indicate percentage distribution of total banks reporting Total number Significantly Essentially Significantly None None Item of banks1 larger unchanged smaller received approved Urgency of credit allocation as compared with mid-Sept. 1974 ........................... 123 (100.0) 8 (6.5) 74 (60.2) 41 (33.3) Purpose and nature of loans: To meet basic credit needs for normal operations— Applications received .................. 123 (100.0) 26 (21.1) 81 (65.9) 16 (13.0) Proportion approved ..................... 123 (100.0) 9 (7.3) 101 (82.1) 13 (10.6) To finance capital investment— Applications received ................. 123 (100.0) 26 (21.1) 67 (54.5) 30 (24.4) Proportion approved ..................... 123 (100.0) 12 (9.8) 95 (77.2) 16 (13.0) To businesses suffering temporary illiquidity— Applications received ................. 123 (100.0) 63 (51.2) 49 (39.8) 4 (3.3) 7 (5.7) Proportion approved ..................... 123 (100.0) 36 (29.2) 75 (61.0) 4 (3.3) 8 (6.5) To finance homebuilding industry— Applications received ................. 123 (100.0) 5 (4.1) 24 (19.5) 94 (76.4) Proportion approved ..................... 123 (100.0) 6 (4.9) 75 (61.0) 42 (34.1) To individuals for basic house­ hold needs and autos— Applications received ................. 123 (100.0) 8 (6.5) 29 (23.6) 86 (69.9) Proportion approved ..................... 123 (100.0) 9 (7.3) 77 (62.6) 37 (30.1) For purely financial activities— Applications received ................. 123 (100.0) 1 (0.8) 29 (23.6) 55 (44.7) 38 (30.9) Proportion approved ..................... 123 (100.0) 0 (0) 13 (10.6) 33 (26.8) 77 For speculative purposes— Applications received ................. 123 (100,0) 1 (0.8) 26 (21.1) 74 (60.2) 22 (17.9) Proportion approved ..................... 123 (100.0) 0 (0) 9 (7.3) 40 (32.5) 74 •Two banks on the original panel of 125 had merged with other banks, but all of the 123 other members of the panel responded to the survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 Federal Reserve Bulletin □ March 1975 The banks in the survey panel were asked TABLE 2 to evaluate the urgency of credit allocation in Loans outstanding: Changes in selected December 1974, as compared with the situation categories (October 16, 1974-January 15, 1975) prevailing in September when the FAC state­ ment was issued. Whereas two-thirds of the Amounts in millions of dollars respondents indicated that the situation had not Change in— changed significantly, one-third of the banks did Loan category report that the problem of allocating available Amount Per cent funds among their various types of credit de­ mand was significantly less urgent. Commercial and industrial loans In order to evaluate both the pattern of de­ adjusted1 ................................................. 744.3 .73 mands for bank credit and bank attitudes toward Real, estate loans secured primarily by residential properties plus residen­ credit requests, the survey respondents were tial construction loans included in commercial and industrial loans... 297.7 .97 asked a series of qualitative questions on the trends in numbers of loan applications and the Loans to nonbank financial institutions -25.1 -.09 Finance companies ................................. 354.1 3.97 proportion of such requests approved in De­ Other ............................................................ -379.1 -1.85 cember 1974, as compared with the normal Loans to individuals ................................... -126.4 -.45 experience during that month in recent years. Net change in claims on foreigners ... -2,523.4 -18.44 For certain types of loans that ordinarily repre­ Memo: sent only a small proportion of amounts out­ Loans to foreigners2 ............................. -747.0 -6.02 Due to foreigners3 ................................. 1,776.4 6.81 standing—such as loans for temporary liquidity needs, for purely financial purposes, or for 1 Excluding residential construction loans and loans to speculative operations—the banks were also foreign businesses (data partly estimated). 2Loans to foreign businesses plus loans to foreign commer­ asked to indicate whether they had had any such cial banks, foreign governments, and foreign official institu­ loan applications during the report month. tions. 3Demand and time deposits due to foreign banks, foreign In interpreting the replies, which are sum­ governments, foreign official institutions, and foreign individ­ marized in Table 1, it should be recognized that uals, partnerships, and corporations (data partly estimated), plus gross liabilities to their own foreign branches. credit availability at banks was more restrictive in December 1974 than it had been on the average in that month during preceding years. made prior to the survey period, as well as new Thus, as shown in that table there was a larger loans for which applications were received or than usual number of applications from busi­ processed during the period covered by the nesses suffering a temporary lack of liquidity. questionnaire.1 The statistical summary also Despite the tighter conditions, 90 per cent of compares the change in bank loans to foreigners the banks either approved as many requests as with the change in funds obtained from foreign usual or approved a significantly larger number. sources during the period. For the banks covered With regard to loans for purely financial or by the sample, funds obtained from foreigners speculative purposes, on the other hand, about increased sharply whereas outstanding loans to 90 per cent of the banks approved either a foreigners actually declined. smaller proportion of requests or none at all. Table 2 gives aggregate data on the changes lrThe time period covered was the 3-month period in amounts outstanding in certain key loan cate­ from October 15, 1974, to January 15, 1975, to be gories. It should be noted that the changes in consistent with the intended quarterly timing of the survey and to avoid possible distortions arising from outstandings reflect loan repayments and take­ window-dressing arrangements at the year-end state­ downs of loan commitments that may have been ment date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

131 Treasury and Federal Reserve Foreign Exchange Operations This 26th joint interim report reflects the sufficient marks in the market not only to repay Treasury-Federal Reserve policy of making the remaining $64.6 million equivalent of available additional information on foreign ex­ drawings on the German Federal Bank that were change operations from time to time. The Fed­ outstanding from earlier in the year but also to eral Reserve Bank of New York acts as agent build up balances to finance intervention should for both the Treasury and the Federal Open selling pressure suddenly erupt. Market Committee of the Federal Reserve Sys­ On one such occasion—August 8 and 9—the tem in the conduct of foreign exchange opera­ Federal Reserve sold $20.8 million of marks tions. from balances, $5.3 million of Dutch guilders This report was prepared by Charles A. drawn on the swap line with the Netherlands Coombs, Special Manager, System Open Mar­ Bank, and $2.5 million of Belgian francs, of ket Account, until February 19, 1975, and Sen­ which $0.8 million was from balances and $1.7 ior Vice President in charge of the Foreign million drawn under the swap line with the Department of the Federal Reserve Bank of New National Bank of Belgium; the swap drawings York, and by Scott E. Pardee, who was ap­ in guilders and francs were quickly repaid out pointed Deputy Manager for Foreign Opera­ of market purchases of these currencies. Again, tions as of that date. It covers the period August on September 3, the Federal Reserve sold $16.2 1974 through January 1975. Previous reports have been published in the March and Sep­ tember Bulletins of each year beginning with TABLE 1 September 1962. Federal Reserve Reciprocal Currency Arrangements In millions of dollars Through the late summer of 1974 the dollar showed considerable bouyancy in the exchange Amount markets. From October on, however, the dollar Institution of facility, Jan. 31, 1975 became subject to continuing selling pressure. By late January 1975, the dollar had fallen from Austrian National Bank ................................. 250 its highs by some 27 per cent against the Swiss National Bank of Belgium ........................... 1,000 Bank of Canada ................................................ 2,000 franc and 17 per cent against the German mark National Bank of Denmark ......................... 250 and other currencies in the European monetary Bank of England ............................................... 3,000 bloc. It had also declined by some 3 to 4 per Bank of France .................................................. 2,000 German Federal Bank ..................................... 2,000 cent against sterling, the Italian lira, and the Bank of Italy ...................................................... 3,000 Bank of Japan .................................................... 2,000 Japanese yen. Bank of Mexico ................................................. 180 The dollar’s strength in August and Sep­ Netherlands Bank ............................................... 500 tember 1974 primarily reflected the pull of unu­ Bank of Norway ................................................ 250 Bank of Sweden ................................................ 300 sually high interest rates in New York and in Swiss National Bank ....................................... 1,400 the Euro-dollar market, reinforced by expecta­ Bank for International Settlements: tions that surplus oil revenues would flow into Swiss francs/dollars ..................................... 600 Other authorized European U.S. financial markets after saturating invest­ currencies/dollars ..................................... 1,250 ment outlets elsewhere. With the dollar in de­ Total ........................................................ 19,980 mand, the Federal Reserve was able to buy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin □ March 1975 TABLE 2 Federal Reserve System Activity Under Its Reciprocal Swap Lines In millions of dollars equivalent Drawings, or repayments (—) System System swap swap Transactions with— drawings, 1974 1975 drawings, Jan. 1, Jan. 31, 1974 1975 Qi Q2 Q3 Q4 Jan. National Bank of Belgium ............ 261.8 f 1.7 13.2' 261.8 1—1-7 -13.2 German Federal Bank ..................... ... J 255.0 130.4 301.5 164.0j 382.7 1 -3.7 -122.8 -258.8 -82.8 Netherlands Bank ............................... f 7.6 38.0 3.2 j —7.6 -34.8 Swiss National Bank ....................... 565.0 J 13.3 19.3| 397.8 193.8 - 5.9 Bank for International Settlements (Swiss francs) ................................. 600.0 600.0 255.0 130.4 9.4 366.0 183 Total ............................................. 1,426.8 197.6 -122.8 -268.1 -136.7 ':3} 1,645.4 Note.—Discrepancies in totals are due to rounding. million of marks from balances to check ah ment toward the dollar turned bearish. Mounting abrupt decline in the dollar. Otherwise, the evidence of an economic recession in the United Federal Reserve abstained from intervention States, more severe than in most other countries, until early October. suggested to the market that interest rates would By that time an improving trend in U.S. fall faster here than abroad. That possibility in exports—up 40 per cent from the year before— turn reinforced fears of large-scale shifts of was cutting into the sizable trade deficit caused funds out of dollars by some oil-producing by the $17 billion jump in our 1974 oil import countries as did the ever-present risk of renewed bill. Nevertheless, in early October, the ex­ hostilities in the Middle East. At the same time, change markets were showing signs of ner­ Germany’s continuing strong trade performance vousness over the onset of a sharp decline in rekindled revaluation rumors for the mark, and dollar interest rates and over reports that surplus Switzerland—having lifted barriers to short­ oil revenues were beginning to shift out of term capital inflows—experienced a new influx dollars and sterling into continental European of funds, which bid up the franc rate sharply. currencies. Short bursts of selling pressure oc­ The rise of the franc and the mark tended to curred in October. The Federal Reserve inter­ be mutually reinforcing, and this set off a gen­ vened on 6 days, selling a total of $165.7 eral upsweep of currency rates against the dol­ million equivalent of marks, of which $62.1 lar. On several occasions the dollar rebounded million equivalent was from balances and in response to concerted intervention by the $103.6 million equivalent was drawn under the Federal Reserve and European central banks and swap line with the German Federal Bank. The to the introduction by the Swiss authorities of German central bank bought similar amounts of new curbs on capital inflows. Nevertheless, the dollars in Frankfurt. Late in the month, when vigorous public debate over economic policies the dollar firmed somewhat following discount here and in Europe kept the market on edge, rate cuts in Germany and the Netherlands, the and the dollar continued to slip through late Federal Reserve began to acquire in the market November. moderate amounts of marks against outstanding The Federal Reserve intervened, at times swap indebtedness. forcefully, on 7 days during November. In total, By early November, however, market senti­ $187.9 million equivalent of marks was sold, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 133 of which $164.3 million equivalent was drawn of an accelerated diversification of oil proceeds under the swap line with the German Federal to other currencies intensified. In such an at­ Bank and the rest from balances. In addition, mosphere the market ignored any favorable the System sold $28.5 million equivalent of news for the dollar, such as the underlying Dutch guilders drawn under the swap line with improvement in the U.S. trade balance and the the Netherlands Bank; $10.8 million of Belgian slackening in our rate of inflation. francs, of which $10.4 million was drawn under To cushion the dollar’s decline, the Federal the swap line with the National Bank of Belgium Reserve intervened on 17 of the 28 business and the rest from balances; and $12.5 million days from mid-December through January 24. equivalent of Swiss francs purchased outright Over that stretch, operating jointly with the from the Swiss National Bank. German Federal Bank, the System sold a further Late in November and early December the $134 million equivalent of marks, of which pressures on the dollar eased, as U.S. interest $103 million was drawn under the swap line rates leveled off. The Federal Reserve was able and the rest from balances. The Federal Reserve to purchase marks in the market and repay $82.8 also intervened in Swiss francs in Decemmillion equivalent of swap drawings on the ber-January, and the Swiss National Bank re­ German Federal Bank. The System also pur­ sumed spot intervention in Zurich on January chased sufficient amounts of guilders and Bel­ 6. The System’s sales of Swiss francs amounted gian francs to liquidate in full the November to $51.1 million equivalent, of which $32.5 drawings in these currencies. million was drawn under the swap line with the From mid-December to late January the ex­ Swiss National Bank and the rest purchased change markets were subject to an almost unre­ outright from that bank. In addition, the Federal mitting diet of bearish news for the dollar, and Reserve sold $9.6 million equivalent of Dutch market forces drove dollar rates lower almost guilders and $2.9 million equivalent of Belgian every day. The economic downturn and the slide francs drawn on the swap line with the respec­ of interest rates in the United States reinforced tive central banks. Of these swap commitments, expectations of a further widening of interest $5.9 million of Swiss francs, $6.4 million of differentials already adverse to the dollar. Dutch guilders, and the full amount of Belgian Gloomy forecasts emerging in the debates over francs were repaid through market acquisitions. economic and energy policies in Washington As the depreciation of the dollar continued, further depressed the market. With individual European exporters became increasingly con­ oil-producing countries reportedly growing res­ cerned over an emerging undervaluation of the tive over the dollar’s depreciation, market fears U.S. dollar that would leave them at a competi- TABLE 3 Drawings and Repayments on Federal Reserve System by Its Swap Partners In millions of dollars Drawings, or repayments (—) Drawings Drawings on on Banks drawing on System System, 1974 1975 System, Jan. 1, Jan. 31, 1974 1975 Ql Q2 Q3 Q4 Jan. Bank of Mexico ................................. J ... ... 180.0 ... ...\ \ ... ... ... -180.0 ...j Bank for International Settlements (against German marks) ............ J 26.0 76.0 65.0 129.0 45.0\ 1-26.0 -76.0 -65.0 -129.0 -45.0] Total J 26.0 76.0 245.0 129.0 45.01 \ —26.0 -76.0 -65.0 -309.0 -45.0J Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 Federal Reserve Bulletin □ March 1975 TABLE 4 U.S. Treasury Securities, Foreign Currency Series In millions of dollars equivalent Issues, or redemptions (—) Out­ Out­ standing, standing, Issued to— Jan. 1, 1974 1975 Jan. 31, 1974 1975 Qi Q2 Q3 Q4 Jan. Swiss National Bank ....................... 1,459.2 127.3 1,599.3 Bank for International Settlements 127.3 -127.3 Total 1,586.4 11,599.3 1 Increase in amount outstanding reflects valuation changes through April 1974. Note.—Swiss-franc-denominated security issued to the Bank for International Settlements was reissued to the Swiss National Bank at its maturity in January 1974tive disadvantage in world markets. By late million of Swiss francs having been repaid, January this potential problem was also recog­ some $26.6 million equivalent of those draw­ nized by European government officials, Vho ings remained outstanding on January 31. Of publicly noted that the dollar had fallen to the guilders, $43.3 million equivalent was sold unrealistically low levels in the exchange mar­ in the market—all financed by swap drawings kets. Against this background, the Federal Re­ of which $3.2 million equivalent was outstand­ serve, together with the German Federal Bank, ing at the end of January. The $16.2 million began during the last week in January to inter­ intervention in Belgian francs was financed out vene more forcefully to resist the erosion of of $1.2 million equivalent of balances and $15 dollar rates. Operating on 4 of the 5 days, the million equivalent of swap drawings, all of Federal Reserve sold a further $94.6 million of which had been repaid by the end of the period. marks, drawn on the swap line, and the German Also during the period, on August 21, the Federal Bank purchased a roughly equivalent Bank of Mexico drew the full $180 million amount of dollars. available under the swap arrangement with the In summary, in exchange market intervention Federal Reserve to cover a temporary shortfall during the 6-month period, the Federal Reserve in reserves. This drawing was repaid in No­ sold a total of $742.3 million equivalent of vember, prior to maturity. German marks, Swiss francs, Dutch guilders, As described in the December 1974 interim and Belgian francs. Of this, $619.2 million report, on September 26 the Federal Reserve equivalent was in German marks—$465.5 mil­ Bank of New York, after consultation with the lion drawn under the swap arrangement with the Board of Governors of the Federal Reserve German Federal Bank and the rest from balances System, the U.S. Treasury, and other Govern­ acquired in the market. Liquidation of debt in ment agencies, acquired the foreign exchange marks, including the $64.6 million outstanding commitments of the Franklin National Bank. on August 1, amounted to $147.4 million This action was greeted with relief by market equivalent, with the result that commitments in participants here and abroad, and the subsequent marks stood at $382.7 million equivalent on news of Franklin’s insolvency was taken in January 31. stride by the market with no adverse impact on Intervention in Swiss francs amounted to dollar rates. The New York Bank quickly bal­ $63.6 million equivalent, of which $31.1 mil­ anced the Franklin book and has met the forward lion was purchased directly from the Swiss commitments on maturity. By the end of Jan­ National Bank and the remaining $32.5 million uary, nearly $400 million of the original $725 was financed by swap drawings. With $5.9 million of contracts had been liquidated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 135 by offsetting the outflows of funds abroad. The GERM AN M ARK authorities had not yet abandoned their restric­ tive monetary policy, however, since Ger­ During 1974 the German economy turned in­ many’s inflation rate of 6 to 7 per cent per creasingly sluggish, leading to a slackening of annum remained high by recent historical import demand and a freeing of productive standards, although still far below the inflation capacity for export. For a time the more buoyant rates of most of Germany’s trading partners. In economies of Germany’s major trading partners mid-August the German Federal Bank an­ provided continuing demand for German ex­ nounced a 10-percentage-point reduction in re­ ports. But even after new demand weakened in serve requirements on domestic liabilities, and the face of the spreading worldwide recession, interest rates in Germany held steady while the huge backlog of foreign orders received interest rates in the United States and elsewhere during previous years supported a high level of rose to unprecedented levels. The incentives for production for shipment abroad. Thus, although arbitraging funds out of marks and into dollars Germany, like other industrial countries, faced and other currencies therefore widened, and the a sharply increased oil bill—up $8 billion for mark eased in the exchange market. Conse­ 1974 as a whole—the combined weakness of quently, in August the Federal Reserve was able import demand and rapid growth of exports to buy sufficient marks in the market to liquidate widened Germany’s trade surplus, especially in the remaining $64.6 million of its swap debt the early months of the year. The surprising to the German Federal Bank and to accumulate strength of Germany’s trade position fostered working balances as well. a speculative demand for the mark, which rose In two instances, however, the Federal Re­ to as high as $0.4188 in mid-May and turned serve found it desirable to intervene to restrain around only after reports that the Federal Re­ sudden selling pressure on the dollar. On August serve, the German Federal Bank, and the Swiss 8 and 9, when market uneasiness during the National Bank had agreed on a concerted inter­ transition of presidential authority in the United vention plan to counter speculation against the States was compounded by the release of dis­ dollar. couraging U.S. wholesale price figures for July, A reflux of funds out of marks then devel­ the Federal Reserve sold $20.8 million of marks oped, as nonresidents liquidated some of their from balances, along with smaller amounts of large mark investments of previous years, as Dutch guilders and Belgian francs. Again, on German enterprises lent heavily abroad to fi­ September 3, after the German authorities nance exports, and as the banking sector proposed suspension of their deposit require­ responded to the rise in the dollar interest rates ment on German residents’ borrowing abroad relative to those in Germany. Moreover, market (the Bardepot), the Federal Reserve sold $16.2 nervousness following the June 26 closing of million of marks from balances to check an the Bankhaus I.D. Herstatt weighed on the abrupt decline in the dollar. mark. The spot rate eased, and after the mark Over the next few weeks the mark leveled slipped to the bottom of the European Commu­ off at about $0.3735, 10 per cent below its May nity (EC) band, the German Federal Bank began peak. Meanwhile, interest rates in the United to sell substantial amounts of other EC curren­ States and in the Euro-dollar market were be­ cies as well as dollars. The Federal Reserve was ginning to fall back sharply. Consequently, the able to acquire sufficient marks to reduce its major share of the continuing flows out of Ger­ swap drawings from a peak of $381.6 million many were deflected to other EC financial equivalent in early June to $64.6 million by the centers where interest rates were either un­ end of July. changed or easing only slightly. Thus, while In view of the domestic slowdown and severe holding steady against the dollar, the mark con­ strains in Germany’s credit markets following tinued to require support at the bottom of the the Herstatt collapse, the German Federal Bank EC band, and it depreciated significantly against acted to maintain liquidity in the banking system the Swiss franc as well. By the end of Sep­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 Federal Reserve Bulletin □ March 1975 tember German reserves had dropped by $1.9 on October 15 and 23, financed by swap draw­ billion from end-of-May levels. Meanwhile, the ings on the German Federal Bank. Late in German authorities moved further to relieve the October with evidence accumulating of a sig­ nervousness that remained in the market in the nificant slowdown of the German economy, the wake of the banking failures in Germany earlier German Federal Bank shifted to a somewhat less in the summer. The German Federal Bank and restrictive monetary policy, cutting its discount the German Banking Association established and Lombard rates Vi of a percentage point. The additional backstopping facilities for providing mark then eased, permitting the Federal Reserve liquidity assistance to banks. The German Fed­ to buy moderate amounts of marks as cover eral Bank announced a further 8 per cent cut against swap indebtedness, which amounted to in reserve requirements on September 26, and $103.6 million at the end of October. the Government imposed comprehensive limits In early November, however, market senti­ on banks’ foreign exchange positions effective ment turned even more bullish for the mark. October 1. In the United States increasing evidence that a In early October the balance in the exchange severe recession was under way, while promis­ market began to tip in favor of the mark. As ing to swing the U.S. trade accounts into a U.S. interest rates continued to decline and as smaller deficit than expected, gave rise to ex­ fears of renewed hostilities in the Middle East pectations of an accelerated and abrupt decline resurfaced, the markets began to anticipate di­ of interest rates here. The German trade figures versification of Organization of Petroleum Ex­ for September had shown a renewed large sur­ porting Countries (OPEC) funds out of dollars plus, which—with another substantial surplus and sterling into marks and other continental expected for October—rekindled speculation of currencies. Moderately heavy selling of dollars a revaluation of the mark rate. In addition, a developed in early October, and the Federal sharp advance of the Swiss franc, which had Reserve resisted an excessive bidding-up of the begun in October, was by November exerting mark rate by selling a total of $36.1 million an upward influence on the mark. The largeequivalent of marks from balances on October scale capital outflows that had persisted since 3 and 4. The rate steadied briefly, but on Oc­ the summer began to be met to some extent by tober 9, as the market assessed President Ford’s offsetting inflows. German banks sold some 1 anti-inflationary proposals, a large buy order for billion marks of German public authority notes marks pushed the spot rate up sharply, setting to foreigners, of which one-third was placed off a generalized speculative selling of dollars. with OPEC countries. Moreover, some oil-ex- To maintain orderly market conditions, the porting countries were arranging direct invest­ Federal Reserve sold $104.4 million equivalent ments in German industrial enterprises. of marks, of which $26 million was financed The exchange markets became, therefore, from balances and $78.4 million was drawn on even more sensitive to any developments that the swap line with the German Federal Bank. would be likely to spur a further rise in the In Germany the next day the German Federal mark. Consequently, following news of a jump Bank followed up by buying an even larger in U.S. unemployment, the mark was heavily amount of dollars, and to consolidate the ensu­ bid up on November 6 and 7. Both the Federal ing improvement in the dollar rate, the Federal Reserve and the German Federal Bank inter­ Reserve sold an additional $15.5 million of vened to moderate the rise, with the System marks drawn on the swap line. The mark rate selling a total of $49.2 million equivalent of then steadied at about 4 per cent above early- marks, along with smaller amounts of Dutch September levels. guilders and Belgian francs. The mark sales The Federal Reserve intervened on only two were financed by a $25.6 million equivalent other occasions in October when the dollar drawing on the swap line and by the use of suddenly came under selling pressure against the balances. When the Swiss franc eased off mark—selling a total of $9.7 million equivalent toward midmonth, the mark followed suit, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 137 the Federal Reserve was able to acquire balances sumed their downtrend. For its part, early in in the market. the month the German Federal Bank stated that Beginning on November 14, the mark itself it would seek a somewhat more rapid growth became a renewed object of speculation in the of the monetary base in the coming year, and market following press reports that the German on December 19 it announced a further Vi per­ Government would not oppose a further rise in centage point cut in its discount and Lombard the mark rate. The spot rate was immediately rates to 6 and 8 per cent, respectively. Never­ bid up by almost 2 per cent. The German theless, a further rise of the Swiss franc and Federal Bank and the Federal Reserve both the latest of a series of highly publicized OPEC intervened on that day to resist the rise of the investments in major German industrial firms mark rate—the System selling $39.7 million dominated market psychology. The mark was equivalent drawn on the swap line. Speculation gradually bid up, and to dampen the rise the over a mark revaluation continued, however, Federal Reserve intervened in modest amounts and over the weekend the German Government on 7 business days between December 16 and denied that it was considering measures to raise December 30. These sales totaled $75.1 million, the mark rate. Following this clarification, on of which $31 million was from balances and November 18 the Federal Reserve resumed $44.1 million was drawn under the swap line. forceful intervention not only in marks—selling As the new year opened, the mark had already $56.7 million equivalent drawn on the swap line been bid up by some 11 per cent from its with the German Federal Bank—but also in September levels. Even so, discouraging news Dutch guilders, Belgian francs, and Swiss on the U.S. economy and the further drop in francs. The German Federal Bank and other U.S. interest rates fostered bearish sentiment European central banks followed up on the next toward the dollar, while renewed revaluation day, and the Federal Reserve sold an additional rumors in Germany and the rising Swiss franc $16.2 million equivalent of marks, again fi­ prompted further speculative demand for marks. nanced by a swap drawing. Both the German Federal Bank and the Federal The revaluation talk did not die down com­ Reserve intervened in modest amounts to limit pletely, however, and the mark was bid up once the rise of the rate, but the mark advanced a again on November 22 and 25. The German further 4 per cent by January 24. Through that Federal Bank and the Federal Reserve again date the Federal Reserve had intervened in intervened to resist the rise in the rate, with the marks on five occasions in January for a total Federal Reserve selling a total of $26.1 million of $58.9 million equivalent financed by addi­ equivalent drawn on the swap line. Thereafter, tional swap drawings. On January 27 the mark the announcement of an unexpected trade sur­ jumped by a further 1 per cent to $0.4356, the plus for the United States for October and a highest level since July 1973. By that time, smaller-than-expected trade surplus for Ger­ however, European government officials were many, coupled with a firming of Euro-dollar expressing increasing concern over the unrea­ rates, brought a brief respite. The mark eased, listic levels to which the mark had risen, and and the Federal Reserve was again able to buy the German Federal Bank and the Federal Re­ marks to cover swap indebtedness. In early serve then began to intervene in heavier volume December the Federal Reserve used these pur­ to check the mark’s rise. During the week of chases, together with existing balances, to repay January 27 the Federal Reserve intervened on $82.8 million equivalent of swap debt, reducing 4 days, selling a total of $94.6 million equiva­ the total outstanding to $185.1 million. lent of marks drawn on the swap line, as the The exchange markets turned extremely thin German Federal Bank operated in similar mag­ during December as traders sought to square nitude in Germany. The market began to their books before the year-end. The dollar respond to this more forceful approach, and the again came on offer, as interest rates in the mark eased by 2 per cent from its highs to close United States and in Euro-dollar markets re­ at $0.4275. By the end of January, the System’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin □ March 1975 swap commitments in German marks amounted expectation that the franc, like the German to $382.7 million equivalent. mark, would benefit from any significant diver­ sification of OPEC funds out of dollars and sterling. Following a further reduction in the banks’ SW ISS FRANC required reserves on October 8, the money In Switzerland during 1974, inflation was run­ market in Switzerland had become quite com­ ning at nearly 10 per cent, even though eco­ fortable. The Swiss authorities, therefore, took nomic activity was leveling off during most of advantage of this opportunity to dismantle yet the year. The Swiss National Bank, therefore, another of their previously imposed barriers kept bank liquidity under close rein, while against inflows by lifting the ban on interest modestly easing reserve requirements and pro­ payments to nonresidents on October 16. By viding liquidity to the market through swaps that time, however, traders were increasingly from time to time in response to recurrent strains concerned over possible diversification of OPEC in Swiss capital markets. In the exchanges, funds, and the franc was bid up sharply in a movements of the Swiss franc continued to be thin market. In addition, political uncertainties dominated by “hot-money flows” and shifting elsewhere in Europe and in the Middle East speculative sentiment. In the general decline of generated flows into francs. The spot franc then the dollar from late January to early May, the began to advance sharply not only against the franc had been ratcheted upward by 23 per cent dollar but also against the German mark, the to $0.3588. At that point, a turnaround followed currency of Switzerland’s largest trading reports of agreement among the Federal Re­ partner. serve, the German Federal Bank, and the.Swiss This persistent rise posed a policy dilemma National Bank on a plan of concerted interven­ for the Swiss authorities, since intervention to tion to counter any further erosion in dollar halt the rise of the franc in the exchange mar­ rates. ket—and thus avoid further erosion of Switzer­ The unwinding of long positions in francs and land’s competitive position—would augment further accommodation of liquidity needs in domestic liquidity and thereby undermine ef­ Switzerland extended the decline of the franc, forts to curb inflation. The market began to sift which eased some 6 per cent by the end of July. every statement by Swiss officials to anticipate Its drop was more gradual than that of some the point at which the Swiss National Bank other continental currencies, however, since the might intervene in the exchange markets. Con­ market was concerned that large short-franc sequently, the franc snapped sharply higher on positions arising from the foreign-currency November 7, following news reports from losses disclosed during the preceding months Switzerland that the National Bank was still might still have to be covered. unprepared to buy dollars, only to fall back With the dollar buoyant in August and early nearly 2 per cent over the following days simply September, the Swiss franc continued to ease on reports that the Federal Reserve, the German in a generally quiet market, falling to as low Federal Bank, and the Swiss National Bank as $0.3300 or some 8 per cent below the May were prepared to intervene in a concerted man­ peak. Then, as dollar interest rates began to drop ner. back more rapidly than the comparable rates for Just after midmonth the franc came into de­ Swiss francs, the spot franc turned firm once mand once again in the backwash of speculation again. The Swiss National Bank provided some over a revaluation of the German mark. By $1 billion equivalent of liquidity assistance to November 18 the franc had risen about 16 per the banks through both short-dated and 3-month cent against the dollar from its September lows swaps during September, thus avoiding an even and 5% per cent against the mark. As part of sharper run-up in the franc rate before the a concerted intervention in marks, Swiss francs, quarter end. Nevertheless, demand for Swiss Dutch guilders, and Belgian francs that day and francs continued to swell, partly on the covering on the following day, the Federal Reserve sold of outstanding short positions and partly in a total of $12.5 million of Swiss francs, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 139 had been purchased directly from the Swiss even after year-end positioning. On January 6 National Bank. In response to this operation, the Swiss National Bank resumed outright in­ the franc fell back by 6% per cent over the next tervention in the spot market in Zurich, con­ 2 days. firming its operation “to maintain orderly ex­ The Swiss National Bank followed up on change market conditions.” The Federal Re­ November 20 by reimposing the negative inter­ serve followed up with similar intervention in est charge, at 3 per cent per quarter, and a ban New York as part of its concerted intervention on interest payments, each on the increase in in both francs and German marks. These joint nonresident deposits above October 31 levels. interventions continued over the following days, The central bank also obtained authority to and at first the Swiss franc dropped back. monitor banks’ forward sales to foreigners and The demand for francs soon picked up again, to use swap transactions if necessary to enforce however, after it was reported that failure of these new measures. These actions prompted a financial subsidiary of an Italian company even more of a scramble in the market to unload would leave a major Swiss bank short of francs. francs, and the spot rate dropped a further 2 As the market anticipated a large demand to per cent by November 21. cover a substantial volume of this subsidiary’s Over the next weeks the market in Swiss contracts maturing early in 1975, a more gener­ francs was thinner and even more volatile than alized speculation in favor of the Swiss franc before, as dealers were sensitive to talk of new developed. The franc was heavily bid up to new initiatives to discourage inflows. Under these record levels, while the Swiss National Bank circumstances, when mark revaluation rumors continued to intervene, at times quite heavily. resurfaced the franc advanced a full 6% per cent The Swiss authorities then resisted further up­ by November 26 before settling back. The Swiss ward pressure by severely tightening recently National Bank then took further regulatory imposed curbs on inflows of foreign funds. In measures to limit the rise of the franc. On particular, the ban on interest payments was November 28 it reactivated the requirement that widened to apply to all nonresident balances, proceeds of foreign borrowings in Switzerland the negative interest charge was raised to 10 be converted immediately into foreign currency. per cent per quarter, banks were required to Four days later it raised banks’ reserve require­ balance all foreign exchange positions daily, ments against deposit liabilities to nonresidents. and provision was made whereby the National The National Bank also announced it would Bank could block Swiss franc liquidity resulting again assist the banks with their year-end posi­ from dollar intervention. tioning by providing swaps. These new measures at first drew a strong Ultimately, the National Bank provided $1 market response, and the franc fell back. But, billion of year-end swap assistance and did an as the market grew doubtful that these measures additional $500 million of 1- and 3-month swaps could prevent a further rise in the franc as long outside the usual quotas to influence market as short franc positions overhung the market, conditions. Even so, the market continued to the Swiss franc turned around and was soon push the rate up during December. On De­ outpacing other European currencies. By Jan­ cember 17, after the franc rose especially uary 27 it had reached a new record of $0.4195, sharply, the Federal Reserve again intervened some 27 per cent above last summer’s lows. in both German marks and Swiss francs, selling The Swiss National Bank then tightened its a total of $26.5 million equivalent of francs, November regulation, limiting Swiss banks’ of which half was purchased outright from the sales of Swiss francs to nonresidents. Swiss National Bank and half was drawn under By this time the immediate demands for the swap line with that bank. The franc eased Swiss francs had slackened, and the dollar had over the next days, and the Federal Reserve begun to recover in other markets. Conse­ purchased francs in the market to repay $5.9 quently, pressure in favor of the Swiss franc million equivalent of the swap debt. let up, and the franc eased to $0.4014 by the In the generally bearish atmosphere for the end of January. During the month the Federal dollar, the Swiss franc continued to advance Reserve, operating on six different occasions, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 Federal Reserve Bulletin □ March 1975 sold a total of $24.6 million equivalent of By early October, however, the inflow of francs. Of this amount, $5.3 million was pur­ oil-related funds tapered off, as concern over chased outright from the Swiss National Bank Britain’s economy continued and short-term and $19.3 million was drawn under the swap sterling interest rates suddenly declined. In ad­ line. Consequently, System drawings in Swiss dition, there was some temporary nervousness francs were increased by $26.6 million equiva­ ahead of the October 10 general election. The lent as a result of the December-January opera­ pound therefore tended to weaken against many tions, bringing total Swiss franc indebtedness of the continental currencies while holding including that outstanding since 1971 to $397.8 roughly steady against the dollar. The market million equivalent by the end of January. soon came into better balance, however, as new demand for relatively large October oil pay­ ments in sterling counterbalanced continuing sales by oil producers diversifying out of ster­ STERLING ling. Following the trend of other European Last summer the United Kingdom was faced currencies more closely, the spot pound firmed with severe financial, economic, and balance of to $2.35 by early November. payments strains. Industry was caught between Meanwhile, adverse economic developments high wage, raw material, and financing costs led to some apprehension ahead of the No­ on the one hand and statutory limits on pricfes vember 12 budget message. The worsening in­ on the other. The ensuing squeeze on profits flation had triggered successive rounds of and corporate liquidity was restricting inventor­ threshold wage increases, and recently nego­ ies, investment, and output. With industrial tiated wage settlements had cast doubt on the production not fully recovered from the disrup­ effectiveness of the Government’s “social con­ tion of the 3-day workweek earlier in the year, tract” to achieve a voluntary pay restraint. the new cutbacks threatened a more prolonged Prospects of rising unemployment were in­ stagnation and a rising unemployment rate, creasingly underscored by news of further while domestic inflation continued at a rapid layoffs and business failures. The market was rate. Meanwhile, the trade deficit had swelled somewhat reassured by new budget proposals to more than $6 billion in the first half of the to alleviate corporate liquidity strains without year, of which close to $3 billion reflected having an excessive over-all stimulative impact costlier oil imports. At the same time, the as many market participants had feared. More­ worldwide slowdown of economic activity cast over, the extension of the Bank of England’s a shadow on export prospects. supplementary deposits scheme to allow the Although the exchange market sentiment re­ banks to help provide sufficient corporate fi­ mained bearish toward sterling, the pound de­ nancing without encouraging a more rapid preciated on a trade-weighted basis only slightly growth of the money supply was also viewed during August and September while slipping positively. against the dollar some 2 per cent to around The market was caught by surprise, however, $2.33. Oil-related and other capital inflows by an accompanying announcement from the roughly offset the United Kingdom’s large cur- Chancellor of the Exchequer that the United rent-account deficit and helped bolster the spot Kingdom’s guarantee arrangements on official rate. During the third quarter oil-exporting holdings of sterling would be allowed to expire countries invested a net $2.2 billion in relatively in December. As these guarantees did not apply high-yielding sterling assets. Oil companies also to the large accumulation of sterling holdings accumulated sterling, both spot and forward, in since September 1973, the market had taken in anticipation of future tax and royalty payments stride Australia’s announced withdrawal from and for investments in North Sea exploration. its arrangement in September 1974. But since The Bank of England operated on both sides some dealers saw total abolition of guarantees of the market in August and September to as possibly stimulating accelerated diversifica­ smooth the impact of oil-related transactions. tion out of sterling, heavy selling pressure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 141 quickly materialized and the spot rate dropped though rising somewhat against the dollar to below $2.30. $2.38 by the month-end. The Bank of England After substantial support by the Bank of provided further moderate support to check the England, as well as renewed oil-related demand erosion. Over the 2 months of December and for November royalty payments, the market January, official dollar sales, together with other steadied and sterling moved narrowly against foreign-currency payments, were partly offset the dollar through early December. Never­ by additional drawings on the U.K. Govern­ theless, with other currencies advancing against ment’s $2.5 billion Euro-currency loan, but the dollar, sterling lost further ground against Britain’s reserves nevertheless declined by the currencies of Britain’s major trading about $1 billion. partners. During October and November half of the Government’s $2.5 billion Euro-dollar loan and $400 million of the British Water Council’s JAPANESE YEN loan from Iran were taken into foreign exchange reserves, which increased on balance about A $6 billion increase in Japan’s oil import bill $650 million for the 2 months. in the first half of 1974 and sharply higher Just before mid-December it was reported that commodity prices had driven Japan’s current Saudi Arabia had informed the Aramco group account into deep deficit early in the year. This that it wished all future oil payments to be made was largely financed by heavy short-term bor­ exclusively in dollars. The subsequent liquida­ rowings by Japanese banks, both in the Euro­ tion of sterling previously acquired by Aramco dollar market and in the United States. By members and prospects of even more diversifi­ midsummer, however, with the Euro-markets cation of OPEC funds largely into continental under unusual strains, some Japanese banks currencies triggered new selling pressure on the were reportedly approaching credit limits and pound. The Bank of England resisted the rate facing increasing costs of funds there. The Jap­ decline with substantial support. Thereafter, anese authorities requested the banks to refrain Saudi Arabia reaffirmed publicly that it would from excessive borrowing, and then the demand continue to invest in sterling assets, and other for spot dollars in Tokyo increased. By August Middle East sterling holders followed up with 22 the yen had fallen more than 10 per cent similar reassuring statements. The market then from its late-March 1974 peak to $0.003294, steadied and, when a severe squeeze developed its lowest point since it was floated in February in the Euro-sterling market, the pound benefited 1973. from some covering of short sterling positions. The Bank of Japan from time to time inter­ Over the remainder of the year the spot rate vened in the market to avoid wide fluctuations traded narrowly around $2.34 and the trade- in the yen rate, providing support through mod­ weighted value of sterling recovered from the erate sales of dollars. The authorities also took record low set on December 12. a series of steps in August and early September During January sterling once again lagged to relax impediments to inflows of foreign funds behind the strong advance of the major conti­ to Japan. Controls were eased on net conver­ nental European currencies against the dollar. sions of dollars into yen by foreign banks, on New fears about corporate solvency in Britain prepayments for Japanese exports, and on and about possible diversification of sterling nonresident investments in certain Japanese se­ balances exerted a drag on sterling. Later in the curities. In addition, reserve requirements on month the favorable impact of improved trade nonresident “free yen” deposits were reduced figures for December was more than offset by to zero. These measures helped relieve the successive reductions in the Bank of England’s pressure, and the yen rate steadied above its minimum lending rate to 11 per cent and by lows. corresponding declines in London money mar­ Meanwhile, Japanese economic activity re­ ket rates. Consequently, the pound weakened mained sluggish after a sharp decline early in further against major continental currencies al­ the year. Upward pressure on wholesale prices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin □ March 1975 abated, but consumer prices continued to rise $0.003363, some 3 per cent above the August rapidly. Therefore, the Japanese authorities low. maintained their highly restrictive monetary policy. With domestic sales sagging and inven­ tory financing becoming increasingly burden­ FRENCH FRANC some, Japanese companies placed greater em­ phasis on exports. As shipments abroad surged, In contrast to many other industrial countries, Japan’s trade balance, after a $2.7 billion first- France enjoyed real economic growth and rela­ half deficit, swung decisively into surplus by tively low unemployment during the year. On late summer. Successive reports of this turn­ the other hand, the inflation rate remained rela­ around contributed to the improvement in mar­ tively high, compared with price trends in Ger­ ket sentiment in September. After mid-Sep­ many and in neighboring countries. Moreover, tember, wire service reports that a $1 billion the trade account, which had been in moderate loan had been arranged between an oil-produc­ surplus throughout 1973, swung into deep defi­ ing nation and Japan sparked active bidding for cit by May. In part, this deterioration was in yen. Later in the month figures were released response to relatively buoyant domestic de­ showing a current-account surplus for Au­ mand. More importantly, it reflected a $6 billion gust—the first since the escalation of oil prices increase for 1974 in France’s oil import bill, the winter before—and the yen was bid up as well as the adverse shift in French terms of further to a level 3 per cent above its August trade following the downward float of the franc lows. early in the year. By early October the yen had steadied around To counter the worsening inflation and the $0.003333, but market uncertainties persisted, weakening trade position, the French Govern­ and the yen came under some renewed pressure ment imposed progressively more stringent in late October. Trading then came into better economic policies. In June the Government balance during November and early December, adopted a new anti-inflation program containing as the Japanese authorities further relaxed re­ credit, tax, price control, and energy-saving strictions on capital inflows from abroad. The measures. In September it followed up by re­ Ministry of Finance permitted Japanese cor­ newing ceilings on credit growth (except on porations to use the proceeds of certain foreign credits to finance export production) and by bond issues for domestic purposes, and several announcing a stringent $11 billion limit on oil companies quickly moved to arrange new issues imports for 1975. Meanwhile, around midyear, abroad. The Bank of Japan also asked Japanese the Bank of France had hiked its discount rate banks to reduce as much as possible the addi­ to a record 13 per cent, stiffened penalties for tional cost of their borrowings in the Euro-dollar banks exceeding official credit ceilings, and market. maintained a severely tight money market. As Continuing market concern over prospects for monetary policies in other countries were grad­ the yen resurfaced in late December and early ually relaxed, substantial interest rate differen­ January. Pressure on the yen gradually eased, tials in favor of the French franc emerged. In however, as dealers reacted to news of Japan’s response, short franc positions—built up before strong export performance in December and as the floating of the franc and the French presi­ new Japanese corporate borrowings from abroad dential elections in May—began to be covered were converted into yen. Moreover, the market and French enterprises stepped up their borrow­ responded favorably to the Bank of Japan’s ings abroad. reaffirmation of its policy of restraint, until The franc remained relatively firm during the prices had stabilized, and to the generally anti- late summer and early fall. Although it eased inflationary thrust of the Government’s draft from its early-August levels as the dollar budget. By late January the yen had begun to strengthened around midmonth, its decline was advance in sympathy with the sharp rise of less pronounced than for most currencies. Fa­ European currencies against the dollar, reaching vorable interest rate incentives, together with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 143 news of more bank failures and large exchange cessful Middle East negotiations promised to losses elsewhere in Europe, prompted further bolster France’s external position in the coming repatriations of funds and a building-up of franc year. The franc climbed sharply, therefore, balances by nonresidents. By the end of August again outpacing other currencies as the dollar the franc had resumed an uptrend that gained declined in December. The Bank of France momentum after mid-September, when discus­ resumed intervention, buying dollars regularly sions of multilateral proposals and direct deals to keep the franc’s rise in line with other cur­ for financing European oil deficits helped to rencies. dispel some of the market’s concern over After the first week in January, the French France’s large oil deficit. The franc at times Government began gradually to relax its restric­ outpaced the German mark and other European tive monetary policy. The Bank of France cut currencies in the general upswing of currencies its discount rate 1 percentage point to 12 per against the dollar, rising 4 per cent to $0.2145 cent on January 9. In addition, minimum reserve by November 7. To moderate the rise of the requirements were reduced on January 21, and franc, the Bank of France made increasingly the regulation of bank credit was made more heavy purchases of dollars, thereby contributing flexible. Nevertheless, French interest rates re­ to the $600 million increase in French reserves mained well above those in most other markets during the 3 months to the end of October. and the French franc continued to advance. Meanwhile, the economic climate in France Boosted further by news of a trade surplus in was deteriorating. The high rate of inflation December—the first monthly surplus since generated growing labor unrest, and by early 1973—the franc moved up to $0.2349 just be­ November a number of strikes erupted that fore the end of January to trade nearly 14 per threatened to disrupt production. At the same cent above its mid-August lows. time, the Government’s austerity measures were beginning to bite, causing an abrupt slowing of output and a jump in unemployment. Against this uncertain background, the rise in the franc ITALIAN LIRA faltered. Indeed, while holding steady against the dollar through much of November, the franc Midsummer 1974 marked a significant turning dropped to its lowest levels against the German point in Italian economic and balance of pay­ mark and other continental currencies in 5 ments trends. During the first half of 1974, months. Following reports of large-scale layoffs inflation was continuing at a rate two to three and short hours, the labor strikes ended, and times faster than in most other major industrial pressure against the French franc eased. Late countries, as sharply higher costs for imported in the month market tone improved further after oil and other commodities, production bottle­ President Giscard d’Estaing relieved growing necks in some industries, and an expanding concern over unemployment by promising re­ Government budget deficit helped perpetuate the newed economic expansion for 1975 and by inflationary spiral. The current-account deficit providing special assistance to industries most had more than doubled under the weight of a vulnerable to the slowdown. $6 billion increase in oil imports for 1974, By early December the franc was again in exerting persistent pressure on the lira in the demand. French interest rates remained near exchanges. The authorities had intervened their peak levels with the 3-month Euro-franc heavily to prevent a substantial depreciation of rate some 8 percentage points above the corre­ the lira from worsening domestic inflation. The sponding Euro-dollar rate. Moreover, France’s bulk of this intervention had been financed by trade deficit was narrowing far more rapidly than new foreign borrowings, including EC short­ had been forecast, as imports slackened in the term assistance, and by midyear Italy’s me­ face of weakening domestic demand and lower dium-term indebtedness to the Euro-dollar mar­ energy requirements. In addition, news of a $1 ket stood at $8 billion. Meanwhile, to eliminate billion loan agreement with Iran and other suc­ the non-oil deficit, contain inflation, and rein Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 Federal Reserve Bulletin □ March 1975 in public spending, the authorities progressively or about $120 per ounce.) Then, in mid-Sep­ stiffened monetary and fiscal policies and im­ tember, Italy borrowed $315 million from the posed an import-deposit scheme. IMF oil-financing facility and renewed its Euro­ By midyear these measures were beginning pean Monetary Cooperation Fund credit of $1,to take hold. A sudden weakening of domestic 885 million. The Government also announced demand was narrowing the non-oil component a second takedown of $540 million equivalent of the trade deficit, and declines in world com­ from Italy’s IMF standby credit. The new bor­ modity prices promised an unexpected further rowings, which were taken into official reserves improvement. The severe tightening of domestic over the 2 months through the end of Sep­ liquidity was stimulating a substantial influx of tember, helped improve market sentiment, and short-term funds, as Italian commercial banks the lira held about 3 per cent below its late-July borrowed heavily in the Euro-dollar market to levels until early October. finance domestic lending. Conversions of these Meanwhile, the Italian economy had mar­ borrowings had a steadying effect on the Italian kedly slowed down, with industrial output fall­ lira in the exchanges, and the Bank of Italy had ing sharply. Domestic price inflation continued been able to add to its reserves. to worsen, however. As Cabinet disagreement By late July the Italian authorities had become over continuation of the Government’s austerity concerned that the rapid growth of bank bor­ program surfaced, leading to Prime Minister rowing abroad would frustrate the extremely Rumor’s resignation on October 3, outflows of restrictive monetary policy and might aggravate funds put renewed pressure on the lira. The existing strains in the international capital mar­ exchange rate slipped about 1 per cent against kets. Therefore, the authorities instructed banks the dollar and 4 per cent against other EC to limit their net foreign indebtedness to July currencies, while the Bank of Italy provided 19 levels, and the net inflow of funds began heavy support in the first half of the month to to taper off in early August. Then, after Italy’s moderate the lira’s decline. Although selling severe liquidity crunch eased somewhat with the pressures temporarily subsided toward the end exemption of all agricultural products from the of October, the lira remained relatively weak import-deposit scheme, the repayment of and did not participate in the general upsurge foreign borrowings picked up and continued of European currencies in November. By the throughout the next several weeks. By the end end of that month the lira had depreciated by of September Italian banks had reduced their a further 1 per cent against the other EC curren­ net foreign indebtedness by almost $1 billion. cies, while holding steady against the dollar. As these repayments coincided with the normal Over the 2 months, intervention sales of dollars seasonal slackening of tourist receipts, the lira were mainly responsible for a $1.2 billion de­ periodically came under some selling pressure cline in official reserves. during August and early September. The Bank Market sentiment improved considerably in of Italy provided occasional moderate support December, as the new Government under Pre­ for the lira rate to prevent it from weakening mier Moro moved swiftly to implement its eco­ too rapidly against other European currencies. nomic program. Monetary policy was kept re­ In the meantime, Italy obtained new official strictive, although the Bank of Italy made a credits to cover its current-account deficit. In modest cut in its historically high discount rate. early August the Italian authorities drew a total In addition, measures to discourage crude oil of $622 million equivalent from the Interna­ imports were adopted and plans for expanded tional Monetary Fund (IMF) against its gold capital investments in energy, agriculture, and tranche and the first tranche of its $1.2 billion public works were proposed. In the exchanges, standby credit. Later in the month the Bank of a significant reflow of funds, which had been Italy obtained $2 billion by way of a reciprocal moved out of the lira at the height of the Cabinet gold-dollar deposit with the German Federal crisis, was reinforced by continuing tight money Bank. (In that transaction, the gold was valued market conditions. Furthermore, the slowdown at 80 per cent of average recent market prices of economic activity was dampening import Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 145 demand. Thus, the lira rate firmed almost 2.5 figures. The sale of guilders was financed by per cent during December. a drawing on the swap line with the Netherlands After the year-end, however, the lira again Bank and, as the guilder quickly resumed its came on offer. The Bank of Italy relaxed its decline, sufficient guilders were acquired to liq­ restrictive stance somewhat further and, as li­ uidate the swap commitment. By early Sep­ quidity strains in Italy eased during January, tember, the guilder had fallen 33A per cent to short- term reflows slowed. In addition, although $0.3663. Italy’s non-oil trade was improving, a seasonal Money market conditions in Amsterdam then weakening in the trade balance and a bunching tightened, as seasonally heavy tax payments of oil payments depressed the rate. As on other pushed up Dutch interest rates at a time when occasions, moreover, pressure on the dollar a cut in reserve requirements in Germany was occasionally spilled over onto the lira, and it adding to liquidity in Frankfurt. In addition, the lost substantial ground against the EC curren­ Dutch Government announced, as part of its cies. The Bank of Italy again provided support, 1975 budget proposal, a steep increase in the and by the month-end the immediate pressures price of natural gas, estimated to add $500 had lifted. On January 31 the lira rate stood million to the Netherlands’ 1975 exports. Con­ at $0.001564, about 1 per cent higher than at sequently, the guilder was again bid up, and the outset of the reporting period. as the EC snake came under increased pressure, the Netherlands Bank stepped up its purchases of marks. The Dutch central bank also began to provide substantial amounts of guilders through 1- to 3-month dollar swaps with the NETHERLANDS GUILDER commercial banks, lessening domestic liquidity The Netherlands strong current-account surplus strains. In the 2 months August-September, in 1974, together with expectations of further Dutch official reserves increased by about $1 improvement in the balance of payments in billion. 1975, kept the Dutch guilder strong against both In October the guilder participated in the the dollar and other European currencies during upward movement of continental European cur­ the reporting period. Prospects for increased rencies against the dollar, with little reaction to natural gas exports blunted the impact of higher a percentage point reduction in the Netherlands prices on oil imports, while port and shipping Bank’s discount rate to 7 per cent late in the services were improving the net invisible bal­ month. In view of the relative positions of EC ance. Reports of a continuing large current-ac­ snake currencies in November, when the Euro­ count surplus had spawned revaluation rumors pean currencies began to advance more sharply, in late July. Speculative demand for guilders the Federal Reserve supplemented its interven­ had been countered by coordinated Netherlands tion against marks by offering guilders as well. Bank-Federal Reserve intervention, and the The Federal Reserve sold $6.5 million equiva­ rumors were spiked by an official denial of any lent of guilders on November 7 and a total of revaluation intentions. The guilder then turned $22 million equivalent during the coordinated lower, dragged down by the declining German central bank intervention of November 18 and mark, and substantial intervention against marks 19. The Netherlands Bank followed up in the was required to maintain the limits of the EC Amsterdam market by purchasing moderate band. amounts of dollars. The System’s sales were The only Federal Reserve intervention in financed by drawings on the swap line and were guilders late in the summer came on August 9 repaid through market purchases when the when $5.3 million equivalent was sold along guilder temporarily declined. Dutch reserves with other currencies, as markets were briefly increased another $550 million during October unsettled during the period of transition of pres­ and November, largely as a result of continued idential authority in the United States and after dollar swap transactions with the Dutch banks. release of disappointing U.S. wholesale price By early December the guilder strengthened Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin □ March 1975 again to a level 6.5 per cent above its September continental financial centers and remained rela­ low. tively firm throughout the second half of the Meanwhile, the Dutch Government, increas­ year. The pull of high yields in Belgium ingly concerned about rising unemployment and prompted both a reflux of previous outflows and sluggish domestic economic activity, particu­ inflows of new short- and long-term capital. larly in the construction industry, had an­ These inflows, together with a current account nounced new measures to stimulate the econ­ that was still in surplus despite higher imported omy. Taxes on wages and salaries would be cut oil costs, provided a continuing buoyancy for as of April 1, 1975, investment incentives were the Belgian franc in the exchanges. broadened, and private-sector payments for so­ Accordingly, in August the Belgian franc cial services were reduced. Together with the declined more gradually than most other Euro­ planned deficit in the September budget, these pean currencies against the dollar, while holding actions would provide substantial fiscal stimulus just,below the top of the EC band. The Federal while monetary policy would remain moderately Reserve sold $2.5 million equivalent of Belgian restrictive to counter inflationary pressures. francs, along with its sales of other currencies, Thus, Dutch interest rates held above those in to forestall a sudden slippage in dollar rates on some other financial centers and provided an August 9. Of this, $1.7 million was financed incentive for funds to move into guilders as the by a drawing on the swap line with the National dollar generally remained on offer in the ex­ Bank of Belgium, and the remainder was drawn changes in December. The Dutch authorities from System balances. The swap commitment again provided liquidity through dollar swaps was promptly repaid as the Belgian franc was with commercial banks and also bought modest pulled down by the German mark. In early amounts of dollars outright in the spot market. September the commercial rate bottomed out at For its part, the Federal Reserve also intervened $0.025275, almost 4 per cent below earlyin guilders in New York on December 17 and August levels. 27, selling a total of $9.6 million equivalent After mid-September, however, the franc of guilders along with other currencies to cush­ began to rise again. Liquidity in Belgium was ion the decline in dollar rates. These sales were tightened further by tax payments and by higher financed by additional swap drawings, of which reserve requirements on call deposits. More­ all but $3.2 million was repaid through subse­ over, there was a shift of funds into francs out quent market purchases. The guilder never­ of German marks in response to a tightening theless was pulled sharply higher in January by of foreign exchange restrictions both in Ger­ the speculative rise of the mark and Swiss franc. many and Luxembourg. In November the rise It reached a peak of $0.4175 on January 27—14 of the Belgian franc accelerated, as pressure on per cent above its September low—before the dollar generally intensified. To dampen the dropping back somewhat on subsequent days franc’s advance and avert a build-up of pressure along with other currencies. within the EC snake, the National Bank of Belgium frequently made modest purchases of dollars in Brussels. In New York the Federal Reserve offered Belgian francs, along with other BELGIAN FRANC European currencies, to smooth the decline in The slowdown that set in around mid-1974 in dollar rates on November 7, 18, and 19, and Belgium’s economy was more gradual than in December 17. Total sales of Belgian francs most other industrial economies. The pace of amounted to $13.7 million equivalent, of which domestic inflation, on the other hand, remained $13.2 million was drawn on the swap line and high relative to that for Belgium’s principal subsequently was repaid through market pur­ trading partners. Consequently, the authorities chases. The remainder was drawn from bal­ maintained a restrictive monetary policy, with ances. the result that Belgian interest rates rose to By the year-end the slowing pace of Belgian levels above those prevailing in most other economic activity had induced an easing of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 147 credit demands, and Belgian interest rates largely responding to the shifting interest rate turned down. Late in January, in view of do­ incentives between Canada and the United mestic and international interest rate trends, the States. National Bank relaxed its credit policy by re­ In early August, when the near-record levels ducing the discount rate by Vi of a percentage of dollar interest rates yielded strong disincen­ point to 83A per cent, raising ceilings on credit tives against Canada, selling of Canadian dollars growth, and releasing reserves against bank time intensified as U.S. corporations repatriated deposits. Nevertheless, the decline in Belgian funds to their home offices. Labor unrest in interest rates lagged behind those elsewhere. Canada further depressed the market. The spot The Belgian franc thus held at or near the top rate fell almost 1 per cent to a low of $1.0109 of the EC band, requiring the central bank to by August 28. The Bank of Canada intervened purchase moderate amounts of other partici­ to avoid too rapid a decline, and during August pating currencies. As the European currencies Canada’s reserves fell $160 million. In Sep­ generally strengthened against the dollar, there­ tember and October, as the retreat of U.S. fore, the commercial franc advanced to short-term rates was underscored by declines in $0.028600 on January 31, and the National U.S. prime rates, the Canadian dollar recovered Bank purchased further small amounts of dollars somewhat. Positioning by Canadian banks in to resist the rise. At this level the commercial anticipation of their October 31 fiscal year-end Belgian franc stood almost 13 per cent above and of several conversions of foreign borrow­ its September low. As of January 31 System ings also temporarily spurred demand for the swap commitments with the National Bank of Canadian currency. But, by late October, the Belgium totaled $261.8 million equivalent of spot rate was again easing. Belgian francs, all incurred prior to August 15, Meanwhile, the sharp production cutbacks in 1971. U.S. output were exerting an increasingly heavy drag on the Canadian economy. As demand for credit weakened, Canadian banks lowered their prime rates. In addition, the Bank of Canada CANADIAN DOLLAR cautiously eased the restrictive stance main­ The gradual decline of the Canadian dollar that tained during the first half of the year by reduc­ had begun in June 1974 continued with only ing its discount rate to 8% per cent, the first brief interruptions during the 6-month period cut from the peak 9lA per cent level established under review. The downtrend primarily in July. Shortly thereafter, chartered banks’ stemmed from a progressive erosion of Can­ secondary reserve requirements were lowered 1 ada’s trade surplus during 1974 and an increas­ per cent to 7 per cent. Then, on November 18, ingly pessimistic market assessment of pros­ the Government announced a somewhat more pects for 1975. Export growth fell off sharply stimulative budget for the fiscal year beginning as a result of the severe slackening of U.S. April 1975, featuring cuts in the personal in­ demand and the break in world commodity come tax. These actions were largely in line prices that tended to weaken Canada’s terms of with market expectations, and the Canadian trade. By contrast, the deceleration of economic dollar fluctuated narrowly between $1.01 and activity in Canada was more moderate than $1.0150 through mid-December. elsewhere, with a still buoyant investment de­ Late in the month, however, market senti­ mand sustaining imports of capital goods. Con­ ment toward the Canadian dollar worsened sequently, many published Canadian forecasts again. News of a Canadian trade deficit of $149 showed the Canadian export surplus of $706 million for November confirmed expectations of million for the first half of 1974 swinging into a continuing deterioration in Canada’s underly­ deficit by early 1975. Whereas trade deficits in ing payments position, and the market was earlier years had been financed by large capital expecting another cut in the central bank dis­ inflows, prospects for long-term inflows were count rate. As Canadian banks added to their now uncertain and short-term capital flows were U.S. dollar positions and commercial leads and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin □ March 1975 lags worsened, the Canadian dollar fell to a resort in the Euro-markets, had concluded that 12-month low of $1.0004 on January 9. means are available for the provision of tempo­ Several days later, the Bank of Canada, hav­ rary liquidity and will be used if and when ing reduced secondary reserve requirements by necessary. The market was further reassured another percentage point in early January, when consortium banks responded to the Bank lowered its discount rate by another V2 of a of England’s request for firm commitments from percentage point to keep it in line with the shareholders to support the banks’ operations if general decline of Canadian money market they ran into problems at any time. Another rates. Since exchange dealers had actually boost to market confidence was given by an counted on a larger cut and there were substan­ official statement that the “Federal Reserve is tial conversions of Canadian provincial foreign prepared, as a lender of last resort, to advance borrowings that boosted the spot rate, the Ca­ sufficient funds, suitably collateralized, to as­ nadian dollar briefly rebounded to nearly $1.01. sure the continued operation of any solvent and Once the conversions were completed, the rate soundly managed member bank that may be turned lower again. After the final trade figures experiencing temporary liquidity difficulties as­ for 1974 were released, revealing a steep ero­ sociated with the abrupt withdrawal of petro­ sion of Canada’s trade surplus to Canadian $419 dollar—or any other—deposits.” million for the year—little more than a fifth of After a fairly steep decline in outstanding the 1973 level—the Canadian dollar eased to deposits last summer, the Euro-currency market $1.0008 on January 31. This represented a 2- resumed its expansion in the final quarter of last per-cent decline against the dollar since August year, albeit at a much reduced rate. Its continued levels and a substantial depreciation against growth benefited greatly from renewed place­ virtually all other major currencies. ments of sizable OPEC deposits, which brought the total for the year to an estimated $23 billion, or 40 per cent of OPEC countries’ surpluses. Thus, the market remained the major receptacle EURO-DOLLAR for those funds that the oil-producing countries The Euro-currency markets continued to suffer were unable to spend for goods and services from the erosion of confidence that afflicted and did not employ for grants-in-aid and loans international banking following the failure of to oil-importing countries. During the summer banks in several countries last year. Persistent and fall the market also benefited from sizable nervousness in the market was reflected in new advances by U.S. banks to their branches, no­ cuts last fall in credit lines to many market tably those located in the Bahamas, which then participants. In particular, smaller and even passed on these funds to a variety of bank and medium-sized banks and those of certain coun­ nonbank borrowers. tries under balance of payments pressure re­ As OPEC and other major supplier countries mained subject to rather close and, in some added further to their Euro-currency holdings, cases, increasingly tight credit ceilings by their over-all liquidity in the market improved, but traditional suppliers. The multitiered rate struc­ the market continued to suffer from a maldistri­ ture that had emerged last spring and summer, bution of liquidity. The very large banks in the therefore, persisted. The strains in the market market had ample funds at their disposal, often gradually subsided, however, with the result more than they desired in view of their capital that the differentials between the rates charged and surplus positions. While the very large to different classes of banks narrowed and al­ banks grew in strength and importance, the role most disappeared early in 1975. of some of the medium-sized and smaller banks The improved market tone owed much to an became stationary or diminished. A few banks announcement by the Bank for International unable to command the relatively attractive rates Settlements on September 10 that the central offered to their bigger competitors actually bank governors meeting at Basle, following a scaled down their operations. discussion of the problems of a lender of last It was the medium-term Euro-loan market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 149 that was most seriously affected by the strains became easier, spreads between loan and de­ in international banking. Last summer and fall posit rates were again narrowing somewhat. the rate of increase in the volume of medium- Interest rates in the market, after having risen term loans slowed down considerably, as many to virtually unprecedented levels, dropped in syndicate participants no longer were able to September and October in response to sharp secure funds at competitive interest rates. Con­ across-the-board declines in U.S. money market sequently, the syndication of balance of pay­ rates. The downtrend in Euro-dollar rates stalled ments and project loans carrying very distant toward the end of November, as the decline in repayment schedules diminished significantly. U.S. domestic rates slowed and as year-end Reduced competition permitted lenders to widen positioning prompted some bidding for dollar the spreads of rates on loans over the rates they funds. Early this year rates resumed their paid for funding these loans and to tighten other precipitous fall in response to actual and ex­ terms and conditions, including the shortening pected declines in U.S. prime rates and other of average maturities for medium-term loans interest rates. By the end of January, 3-month funded with short-term funds on a floating-rate rates had dropped below 8 per cent, almost basis. In more recent weeks, however, as money one-half of the peak levels reached last sum­ market conditions in many parts of the world mer. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Statements to Congress Statement by Arthur F. Burns, Chairman, deliveries became longer and more frequent; Board of Governors of the Federal Reserve costs and prices soared; and the demands for System, before the Committee on Banking, credit increased rapidly and outran available Housing and Urban Affairs, U.S. Senate, Feb­ supplies. ruary 25, 1975. As a result of these developments, our Na­ tion’s productive capacity suffered a setback. I am pleased to meet with this committee today Consumer purchasing power eroded; the real to present the views of the Board of Governors value of the wages, savings deposits, pensions, on Senate Concurrent Resolution 18. and life insurance policies of the American This resolution consists of two parts. The first public diminished. Corporate profits declined— part directs the Federal Reserve System to “take a fact that received little notice because of appropriate action in the first half of 1975 to accounting techniques that had been designed increase the money supply at a rate substantially for inflation-free times. Financial markets un­ higher than in recent experience . . The derwent exceptional stresses and strains, and second part of the resolution directs the Federal interest rates soared to record levels. In short, Reserve to “maintain long-run growth of the inflation led to this recession as it has done time money supply commensurate with the econ­ and again in the past. And what we are now omy’s long-run potential to increase production, experiencing, most other industrial countries are so as to effectively achieve the goals of maxi­ likewise experiencing; for the inflationary boom mum employment and stable prices.” of recent years reached worldwide proportions. To appraise the need for this Senate resolu­ In our country the Government has already tion, it is essential to understand our Nation’s taken some significant actions to mitigate the economic and financial condition and the recent forces of recession that emerged last fall and course of monetary policy. that since then have spread across the economy. Our economy today is suffering from a There is now a need for additional measures serious recession. That such a development to cushion the recession and to encourage early would take place, sooner or later, has long been recovery in economic activity. Yet, as we go clear to students of business cycles, who about this urgent task, we cannot ignore the watched with increasing concern the gathering longer-run implications of the policies that we momentum of inflation. This round of inflation undertake. Defeat of inflationary forces must got under way in our country in 1964; its pace remain a major goal of public policy. Unless quickened in subsequent years with the piling we keep this firmly in mind, we may have to up of Federal deficits and the devaluation of the contend with still more serious economic trou­ dollar, and it became dangerously rapid in 1973 bles a year, two, or three from now. and 1974. As is characteristic of the late stages In recent months the Federal Reserve has of an inflationary boom, speculative activities taken numerous steps to reduce interest rates and flourished, particularly in real estate markets, to enlarge supplies of credit, and thus moderate while industrial efficiency languished. During recessionary forces. Open market operations 1973 and much of 1974, purchasing agents became more accommodative last summer, and found themselves scrambling for materials, short-term market interest rates began to move component parts, and equipment; order books down promptly from the exceptionally high of business firms became overfull; delays in levels reached in July. By early autumn evi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 151 dence had accumulated that economic activity the behavior of interest rates. For example, was weakening and that advances in commodity commercial banks responded initially to the prices were beginning to moderate. Open mar­ greater availability of reserves by repaying bor­ ket operations, therefore, were persistently rowings from the Federal Reserve and by taking directed towards more ample provision of re­ other steps to improve their liquidity. Many serves to the banking system. banks became overextended during the credit Of late, open market policy has been rein­ expansion of 1971-74, and a strengthening of forced by other monetary instruments. The dis­ their financial position was needed to lay the count rate was reduced on three occasions—in basis for subsequent expansion of lending. December, January, and again early this The liquidity of nonbank depositary institu­ month—from 8 per cent to 6% per cent. Re­ tions has also improved. Enlarged inflows of ductions in member bank reserve requirements deposits to savings and loan associations have were also ordered—in September, November, permitted these suppliers of home mortgage and January, releasing a total of nearly %2Vi funds to reduce their indebtedness and to re­ billion of reserves to the banking system. plenish liquid assets. The full benefits of these These easing actions by the Federal Reserve developments for housing finance will not be were taken during a period of weakening de­ felt for some time, but the improved deposit mands for private credit. As auto sales slumped, inflows have already had an effect on mortgage so also did the growth of consumer instalment rates. Rates on new conventional home mort­ credit. In fact, on a seasonally adjusted basis, gages have typically declined by about a full total instalment credit outstanding has actually percentage point from their peaks of early au­ been falling since October of last year. As tumn, and lenders are also becoming more ac­ industrial production declined, so also did busi­ tive now in seeking out borrowers. ness needs for short-term financing. Moreover, In short, financial conditions have eased on the rate of expansion of mortgage credit has a broad front. The liquidity of banks and thrift continued to run far below the pace of 1973. institutions has improved; short-term interest In these circumstances the actions taken by rates have dropped sharply; long-term interest the Federal Reserve since last summer to aug­ rates have also come down; an enormous vol­ ment the supply of loanable funds have had a ume of long-term securities has been success­ dramatic effect on short-term market interest fully marketed; tensions and uncertainties that rates. For example, the Federal funds rate—the afflicted financial markets earlier last year have rate banks pay when borrowing reserves from diminished; and stock prices have been rising one another—has declined by more than 7 per­ briskly of late. centage points from the peak level registered Thus, developments in financial markets have in July of last year. The interest rate on short­ been laying the basis for recovery in economic term commercial paper has declined from over activity, and that process is continuing. Interest 12 per cent last July to around 6 per cent now. rates have fallen further in recent weeks, even And the prime rate has fallen from 12 to 8V2 though Treasury financing needs have grown or 83A per cent. and market participants have begun to anticipate Long-term market interest rates have also the massive Federal deficits that, unhappily, are declined, although much less than short-term now in prospect. rates. With inflation continuing and still in As I have already noted, these needed im­ prospect, a sizable inflation premium inevitably provements in financial markets have been ac­ attaches to long-term interest rates. Moreover, tively encouraged by Federal Reserve policies. corporations have issued exceptionally large Nonetheless, concern is being expressed in amounts of long-term bonds in recent months, some quarters that we are not doing enough to in part because of their desire to lengthen debt stimulate monetary growth. The Board does not and thereby improve their liquidity position. share this judgment. Ours is still largely a free The beneficial effects of easier conditions in economy, and a reasoned evaluation of Federal financial markets are not registered solely in Reserve policy must take into account the vital Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin □ March 1975 role played by decisions of private borrowers aggregates have of late fallen short of what the and lenders. Federal Reserve desired. In recent months, The Federal Reserve can supply the banking therefore, the Federal Open Market Committee system with reserves through open market has taken progressively stronger steps to en­ operations or through reserve requirement courage a faster pace of monetary and credit changes; but if banks choose to repay debt or expansion. For example, at its meeting on Oc­ rebuild their liquidity, these actions will have tober 15, the directive issued by the Committee little impact on the public’s money supply. The to the Manager of the Open Market Account Federal Reserve can have a marked influence called for “resumption of moderate growth” of on short-term interest rates and may also have the monetary aggregates. Again, on January 21 some indirect influence on other terms of credit. of this year, the Manager was directed to But it cannot force businesses or consumers to achieve reserve and money market conditions borrow from their banks and thus to expand the consistent with “more rapid growth in monetary volume of bank loans. The Federal Reserve aggregates than has occurred in recent months. ” cannot force people to hold money in the form The Committee’s actions have resulted in a of demand deposits when they prefer to hold progressively more ample provision of bank their transactions or precautionary balances in reserves, as is evidenced by the sharp decline income-earning assets. Nor can the Federal Re­ since late summer in the interest rate that banks serve force people to use their available cash pay when they borrow reserves from one an­ balances more quickly or more liberally. These other. Since the December meeting of the Open limitations are inescapable and they need to be Market Committee, the Federal funds rate has understood. dropped another 2Vi percentage points. There Of late, the growth of monetary aggregates are few precedents for so large a decline in a has reflected the cautious attitude of banks, period of just 10 weeks. businesses, and consumers. Despite a series of Forces have now been set in motion that will, expansive monetary actions by the Federal Re­ I believe, soon result in a quicker pace of serve, the narrowly defined money stock monetary and credit expansion. Actually, that (Ml)—that is, currency plus demand deposits— process may already be under way. Early this grew at an annual rate of only Al/i per cent in month, the narrowly defined money stock— the final quarter of 1974. In January of this year, which had declined in January, as I noted ear­ moreover, business demand for bank loans was lier—began to increase once again, and the unusually weak, and a decline occurred in M1. rising trend has continued in the latest week. Broader measures of money, on the other As my review of recent monetary policy hand, have shown greater strength. With market actions indicates, the Federal Reserve intends interest rates declining, net inflows of con­ to encourage the expansion in supplies of money sumer-type time and savings deposits at banks and credit needed to mitigate recessionary forces and at nonbank thrift institutions have improved and to encourage early recovery in economic markedly. Growth of M2—which also includes activity. However, we have not thrown caution consumer-type time and savings deposits at to the winds, and I firmly assure you that we commercial banks—was at an annual rate of 7 shall not do so. True, inflationary pressures of per cent in the fourth quarter, compared with late have shown welcome signs of moderating. a 4Vi per cent rate in the third. A still broader But the menace of inflation is by no means measure of money that includes currency plus behind us. Let us not lose sight of the fact that all deposits at all financial institutions—that is, the general price level rose at an annual rate commercial banks, savings banks, savings and of 14 per cent in the fourth quarter of last year. loan associations, and credit unions—showed Let us not lose sight, also, of the fact that the rates of growth of 5% and 8V4 per cent in the Treasury’s demands for credit to finance the third and fourth quarters of 1974, respectively. deficit are enormous, that private credit demands Nonetheless, the growth rates of monetary in the bond market are even now extraordinarily Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 153 large, and that over-all private credit demands recession.” This is a very perceptive comment, will expand when economic activity recovers. and I hope that the committee will ponder this Unless we move carefully and prudently, we comment when it looks closely at the first part might well find that rising credit demands are of the resolution, which could be interpreted to producing an explosion of money and credit that mean that the Federal Reserve is being urged could wreck all chances of lasting recovery. We by the Congress to take much stronger monetary must not let this happen. measures than it has already taken. Let me turn now, therefore, to the resolution The Board regards Resolution 18 as danger­ before this committee today. The Board has no ous for still another reason—the fact that the quarrel with its broad objectives, nor would the Resolution directs the Federal Reserve to pay spirit of the resolution conflict with the current attention to one financial factor only, namely, aims of monetary policy. As I have already the money supply. As this committee knows, noted, the thrust of monetary policy over recent the Federal Reserve System has given very close months has been consistently directed toward attention in recent years to the behavior of faster growth of the monetary and credit aggre­ monetary aggregates. We are well aware that gates in order to enhance prospects for recovery. an expanding economy needs an expanding At the same time, we have avoided excesses supply of money and credit and that any pro­ that could endanger our chances for lasting tracted shrinkage of the money stock could lead prosperity with a reasonably stable dollar. Since to or exacerbate a shrinkage of economic activ­ these are precisely the policies that the Board ity. We are also well aware that excessive intends to continue to pursue, it is not clear why growth of money will lay the base for a new Resolution 18 is needed. wave of inflation. But if the Federal Reserve’s I would remind you, also, that the Federal policies were to be focused solely on the money Reserve System, as an instrumentality of Gov­ supply—as the resolution seems to direct—our ernment, is required to pursue the goals ex­ financial system would be placed in jeopardy. pressed in the Employment Act of 1946, which The risk would become especially great if the specifies “maximum employment, production “money supply” were interpreted to mean and purchasing power” as objectives of national merely currency plus demand deposits—which economic policy. To be sure, the language of is the meaning that emerges from Senator Prox­ the Employment Act is less clear than it should mire’s explanatory statement to the Senate. be on the need for a stable price level. But, Let us not lose sight of the fact that the as a practical matter, the Employment Act has public’s demands for currency, for demand de­ long been interpreted by the Federal Reserve posits, for savings deposits, and for a host of and other governmental agencies to mean that other liquid assets are constantly changing. Fi­ reasonable price stability must be a high objec­ nancial technology in our country has developed tive of public policy. Resolution 18, therefore, very rapidly in the past 20 years. As a rule adds nothing new to the objectives of Federal consumers and businesses no longer hold all, Reserve policy as already defined by statute. or even most, of their spendable funds as cur­ Adoption of the resolution could, however, rency or demand deposits. More and more cor­ have damaging operational consequences. In the porate treasurers have learned how to get along first place, the two parts of the resolution may with a minimum of demand deposits; a large collide with one another. In explaining the res­ part of their transactions and precautionary bal­ olution to his colleagues in the Senate, Senator ances are nowadays placed in interest-bearing Proxmire observed that the second part of the assets—negotiable certificates of deposit, resolution “will help the Fed resist any future Treasury bills, commercial paper, short-term political pressure either from the White House municipal securities, and other forms. Con­ or the Congress to overaccelerate to achieve sumers, too, have learned to keep excess funds short-run gains at the cost later on of still in savings deposits at commercial banks, shares another round of inflation, high interest rates, in savings and loan associations, certificates of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin □ March 1975 deposit, Treasury bills, and other liquid instru­ our responsibilities with respect to the interna­ ments, and they shift their liquid resources tional value of the dollar, we at the Federal among these assets. The result is that no single Reserve may at times, therefore, need to deviate concept of money any longer measures ade­ temporarily from our longer-run objectives with quately the spendable funds that are held by the regard to the monetary aggregates. public. In short, economic and financial conditions For example, the narrowly defined money keep changing, public preferences for liquid stock rose by 4Vi per cent during 1974. But assets keep changing, and so what constitutes this concept of the money supply has lost much an appropriate response of monetary policy must of its earlier significance. If the definition of also change. If we focused solely on the money money is broadened to include consumer-type supply or guided our operations entirely by time and savings deposits at banks and thrift the monetary aggregates, the Federal Reserve institutions, the total increased last year by 6% would fail to fulfill its responsibilities for help­ per cent. If large-denomination negotiable CD’s ing to achieve the economic goals of our are also added, the total rose by almost 9 per Nation. cent—or nearly twice the growth rate of the Finally, the Board objects to the last para­ narrowly defined money supply. graph of Resolution 18, which calls for semian­ In view of such variations, the Federal Re­ nual reports to the Congress by the Federal serve must conduct monetary policy with an eye Reserve of its plans for future monetary policy. on a family of monetary aggregates, the behav­ Such a requirement could limit the flexibility ior of whose members varies remarkably. But of monetary policy in responding to unexpected we must also give careful attention to the level developments, and it could undermine the ca­ of interest rates on mortgages and other loans, pacity of the Federal Reserve to exercise its best the liquidity position of financial institutions and judgment in adapting policies to changing cir­ the general public, and to other economic and cumstances. Such a requirement would also financial factors. This is necessary because the provide opportunities for sophisticated market willingness to use money, no matter how that participants to gain at the expense of others by elusive term is defined, depends heavily on the using the information they would receive on the cost and availability of borrowed funds, and the anticipated course of monetary policy. state of confidence among businessmen, inves­ I do not mean to convey by these comments tors, and consumers. Also, as the Nation’s cen­ that the Board is opposed to consultations with tral bank, the Federal Reserve can never lose the Banking Committees. On the contrary, we sight of its role as a lender of last resort, so welcome the opportunity to report to the that financial crises and panics will be averted. Congress—and as frequently as the Congress The conduct of monetary policy must also may desire—on monetary and financial devel­ take account of the position of the dollar in opments and on the policies that we are pursu­ international markets. When developments in ing. We would indeed welcome the advice and exchange markets result in large declines in the counsel of this committee and of other congres­ value of the dollar, as they have since last sional committees with responsibilities in the September, prices of imported products are field of economic stabilization policy. But a forced up and inflationary pressures are intensi­ more detailed involvement of the Congress in fied. Furthermore, undue fluctuations in ex­ the implementation of monetary policy is, I change rates affect adversely the willingness and believe, unwise. ability of traders to function in international In conclusion, Resolution 18 raises in the markets. Worse still, since the dollar is still the Board’s judgment momentous issues with re­ basic yardstick in international transactions, a spect to the role of the Federal Reserve in the protracted erosion in the international value of economic life of our Nation, whether the Fed­ the dollar could weaken world trade, and it eral Reserve’s traditional insulation from politi­ would certainly undermine the prestige of the cal pressures will continue, whether resistance United States in world affairs. In discharging to inflation may not further diminish, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 155 whether the dollar will remain a respected cur­ changing field—with consequences that could rency around the world. prove very damaging to our Nation’s economy. If the Congress should seek through Resolu­ We therefore hope that this committee will tion 18 to become deeply involved in the im­ consider very carefully the consequences for our plementation of monetary policy, it would enter national welfare that could result from adoption an intricate, highly sensitive, and rapidly of this resolution. □ Statement by Arthur F. Burns, Chairman, of the committee were reported on a voluntary Board of Governors of the Federal Reserve basis, as is the bulk of the statistical reports System, before the Subcommittee on Commerce, that we obtain. We have been highly successful Consumer and Monetary Affairs of the Com­ over the years in obtaining the information we mittee on Government Operations, U.S. House need to carry out the various responsibilities of Representatives, March 6, 1975. assigned to us by the Congress. Our success has been based on our ability to assure reporting I am pleased to meet with this subcommittee banks that the data provided voluntarily by each today to report on the apparent theft of certain of them will be treated in a confidential manner. confidential data from the files of the Board of Consequently, member banks participating in Governors, and on my decision to request an the interest rate survey were assured that the appropriate inquiry by the Federal Bureau of figures each supplied would be held confiden­ Investigation. tial. The data in question relate to interest rates Because of the proven usefulness of the fig­ charged by commercial banks on various types ures, the Committee on Interest and Dividends of consumer, agricultural, and small business recommended in its final report, issued in June loans. They are collected by the Federal Reserve 1974, that the Board of Governors continue to System for a sample of nearly 300 banks and gather the interest rate information. Similar re­ by the Federal Deposit Insurance Corporation quests were received from other Government for another 70 banks. Each month the Board agencies. The data in question meet the needs releases the interest rate information in the form of the Department of Commerce in estimating of averages for the banks covered in the sample the interest paid by consumers, and of the [Federal Reserve statistical release G.10]. Department of Agriculture in estimating interest Before proceeding further, let me explain the payments on farm debt. The Small Business origin of these statistical data. We began col­ Administration has also found the information lecting this information on a regular monthly on interest rates useful in administering its pro­ basis in January 1972 at the request of the grams. Committee on Interest and Dividends, which The Board has been advised by its attorneys was established by Executive Order in October that it is doubtful whether the Board has au­ 1971 as part of the President’s program to thority under existing law to require regular implement the Economic Stabilization Act of reporting by member banks of the type of infor­ 1970. The committee had the responsibility of mation on interest rates that I have been dis­ guiding a program of voluntary restraints on cussing. The availability of these data in the interest rates and dividends. future thus depends on the willingness of banks To carry out its responsibilities, the commit­ to continue their reporting voluntarily. This tee initiated the collection of a variety of statis­ week the Board has asked the member banks tics, including the survey on bank lending rates. that participate in the survey whether they re­ Data collected by the Federal Reserve on behalf gard all or part of this information on interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin □ March 1975 rates as confidential and whether they would be tion, to conduct the inquiry. FBI officials were adversely affected if the data for individual immediately contacted by telephone and their banks were to be made public. Several banks assistance requested. The investigation began on had notified us previously that they will drop February 19. The FBI has complete charge of out of the survey if assurance of confidential the inquiry and I am unaware of what progress, treatment cannot be given. How many banks if any, has been made up to this point. will take this attitude, we do not know at I hope that I have made it clear that the issue present. involved in this case goes beyond the unauth­ It is entirely clear, however, that if refusal orized disclosure of individual bank data on by banks to participate in the survey were at consumer loan rates. In fact, it goes to the very all widespread, this would not only jeopardize heart of our data collection system, which is the information on consumer loan rates that is so necessary in carrying out our responsibilities. now available to the public but it would also The Nation’s central bank cannot have a dis­ jeopardize the numerous other voluntary surveys honest employee; it must take every appropriate conducted by the Federal Reserve—surveys that step to protect the integrity of its operations. yield vital data on bank credit, business loans, I understand that this subcommittee’s interest bank lending practices, consumer credit, and so in this case derives from its concern about on. consumer affairs. As I have already explained, Let me now turn to the apparent theft—a the fact that data on consumer loan rates are matter that has excited this committee’s interest. involved in the case has no relationship whatso­ On February 14 I was informed that Consumer ever to my request for an FBI inquiry. My sole Reports, a magazine published by Consumers concern was, and remains, the apparent theft Union, had in its possession interest rate data of Government property and the continued abil­ that had been reported to us by individual banks ity of the Federal Reserve System to collect for November 1974, that the magazine planned statistical information that is essential in its to publish these data in its March issue, that work. the data had been improperly obtained, and that In conclusion, let me say a word about the a Federal law protecting confidential statistical Federal Reserve’s interest in consumer prob­ data may have been violated. Clearly, if a theft lems. While the Federal Reserve was not estab­ was committed by one or more of the Federal lished as a consumer protection agency, it has Reserve’s employees, it was essential to the become more and more involved in this field integrity of our future operations to establish the over the years. Since 1934 the Federal Reserve facts in the case and to take any corrective action has had responsibility for setting margin re­ that might be warranted. The circumstance that quirements on securities credit—that is, for the apparent theft involved interest rate data had regulating credit that is used to purchase or carry no relevance whatsoever to our handling of this securities. In 1968 the Truth in Lending Act case. What was important to me was the appar­ directed the Board to prescribe regulations for ent theft of Government property. We could the protection of consumers in their credit neither ignore nor condone this. transactions. Last year, in anticipation of addi­ As I reviewed the problem, it became clear tional consumer responsibilities, the Board es­ that three options were available to us. We could tablished an Office of Saver and Consumer Af­ initiate an internal inquiry; we could retain a fairs. This new division, reporting directly to qualified outside firm to undertake an investiga­ the Board, coordinates the System’s respon­ tion; or we could request a law enforcement sibilities that are related to savers and to con­ agency to look into the matter. Since our inter­ sumers. nal resources were unequal to the task, and since Governor Bucher, who has been assigned I had doubts about the propriety of calling in special oversight responsibility in this area, will private investigators, I decided that it would be explain more fully the activities of this Office best to request the Government’s investigative under both long-standing and recently enacted body, namely, the Federal Bureau of Investiga­ legislation. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 157 Statement by Jeffrey M. Bucher, Member, C O M PETITIO N IN Board of Governors of the Federal Reserve C O N SU M ER FIN A N C E System, before the Subcommittee on Commerce, The Board for some time has held the view, Consumer and Monetary Affairs of the Com­ which was later enunciated in the report of the mittee on Government Operations, U.S. House National Commission on Consumer Finance, of Representatives, March 6, 1975. that we should rely basically on vigorous com­ petition to provide optimal performance in terms of the price and the availability of consumer On behalf of the Board of Governors, I welcome credit. For many years the Board has been the opportunity to appear before this subcom­ responsible for administering the Bank Merger mittee to outline the scope of the Board’s con­ Act among State member banks and thus fos­ sumer protection program, with particular ref­ tering competition among these important con­ erence to the collection and dissemination of sumer lenders. More recently under authority statistical data. granted by Section 4(c)(8) of the Bank Holding In 1974, as I shall describe shortly, the Board Company Act the Board has authorized bank established the Office of Saver and Consumer holding companies to establish subsidiary fi­ Affairs in order to provide a focus within the nance companies; as part of this authorization, Board’s structure for the conduct of our respon­ procedures have been established to encourage sibilities affecting consumers. However, we be­ de novo entry in this field. These actions, which lieve it is important to underscore the fact that are essentially procompetitive, are permitted throughout its history, and certainly within the after a careful review by the Federal Reserve. period of time encompassed by the service of Moreover, although the Board’s procedures en­ present members of the Board, the interests of courage de novo entry, we believe the acquisi­ consumers have been very much taken into tion of an existing company in specific instances account over the whole range of decisions we may also be procompetitive. We have denied have made—with regard to such vital areas as applications to acquire existing companies that monetary policy, bank and bank holding com­ compete significantly with the applicant in geo­ pany supervision and regulation, securities reg­ graphical areas they already serve. This has ulation, and electronic funds transfers. Eco­ encouraged applicants to approach the Board nomic policies, particularly those relating to the with proposals involving companies that serve role of monetary policy in economic stabiliza­ markets geographically separated from those tion, are of the utmost importance to all con­ served by the applicant. Substantial competition sumers, and the Board is always mindful of its can result from such a process. At all times the responsibility to be responsive to their concerns. Board keeps in mind the criterion that the public In this regard, the Board continually strives to benefits must outweigh any adverse effects, and follow policies that will promote stable prices, in the consumer credit field this policy should high employment, and production. The Board’s over time result in better service for consumer regulation of member banks contributes to the credit borrowers. welfare of consumers by helping to assure the safety and soundness of banks. To help us in these tasks, we have assembled the best staff SEC U R ITIES we could find, and have given them the job of C R ED IT R E G U L A TIO N informing the Board how best to meet the needs of the public at large. To give you an example In 1934 the Federal Reserve was given the of how this process works, let me mention responsibility by the Congress for setting margin briefly what the Board of Governors has done requirements on credit to purchase or carry to strengthen competition in the area of con­ securities. The principal of this legislation was sumer credit—over and apart from the Truth in to prevent the excessive use of credit to purchase Lending function, which deserves separate or carry securities. treatment. While the securities credit regulations we Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin □ March 1975 have issued under this authority provide indirect on both creditors and consumers, the Board protection for the saver and investor by helping instituted an extensive program of public edu­ to avoid destabilization of securities markets, cation relating to Truth in Lending in conjunc­ the regulations also provide a more direct pro­ tion with developing the necessary regulations. tection. The legislative history of the statutory Early in the life of Truth in Lending, members provision (Section 7 of the Securities Exchange of the staff participated in a great number of Act of 1934 (15 U.S.C. 78g)) shows that the meetings and seminars sponsored by creditor Congress was also concerned about an important and consumer groups and by regulatory agencies ancillary effect of the regulation. By limiting for the purposes of explaining the Truth in the extent to which an individual could be Lending provisions. While no actual count of induced to buy securities on thin margin, the the number of such contacts has been main­ legislation reduced the chances of his being tained, such training sessions constituted a sub­ overcommitted and of being sold out if the stantial amount of the staff’s work during the market should decline. earlier periods. One of the major educational thrusts was to put into the hands of creditors and consumers TR U TH IN L EN D IN G a pamphlet containing the Truth in Lending Act With this record of activity as a background, and Regulation Z. This pamphlet also contained it is perhaps not surprising that in recent years questions and answers about the regulation and the Congress has added to the Board’s respon­ sample disclosure forms. To date, nearly 2 sibilities by placing upon us specific duties in million copies of the Regulation Z pamphlet the field of consumer protection. The first ex­ have been distributed. In addition, copies of ample of this legislation, of course, was the amendments and interpretations of Regulation Truth in Lending Act, which was passed in Z have been available on request, and the Reg­ 1968. This legislation, as you know, was based ulation Z pamphlet has been republished from on the premise that uniform disclosure of credit time to time to include new amendments and costs would enable the consumer to compare interpretations. Any interested person can be more readily various credit terms and thus help placed on the mailing list. to educate consumers in the use of credit. The Board has also developed a leaflet for Amendments to the Act in 1970 prohibited the consumers explaining in easy-to-understand unsolicited distribution of credit cards and lim­ language the primary provisions of the Act. ited the liability for unauthorized use of lost or Thus far, almost 3.5 million copies of this free stolen cards to $50. leaflet have been distributed to the public. A The coverage of Truth in Lending is far- Spanish language version of the leaflet has also reaching because great numbers of individuals been published, and more than a half million use consumer credit in one form or another. copies have been distributed. In addition, the Many retail stores offer charge accounts with Board’s staff has developed film strips for con­ extended repayment privileges and subject to sumer and creditor education. Copies of a film special financing charges; credit cards may be strip may be borrowed free of charge or pur­ used for department and other store purchases, chased for $10 each. Questions from the public travel, or entertainment; cars and furniture may continue to occupy a substantial amount of staff be bought on an instalment purchase plan; most time. In addition, the 12 Federal Reserve Banks homes are purchased with a mortgage; and have also been involved in the educational ef­ medical bills, vacations, and even tax payments forts. are often financed through personal loans Clearly, Truth in Lending is not going to repayable in monthly instalments. Although the effect an overnight change in the consumer’s precise number of creditors subject to Truth in attitude toward the cost of credit and the need Lending is not known, we believe about 1 to shop for credit. We feel that substantial million is a reasonable estimate. further improvement in this area cannot be ex­ Because of the Act’s extremely broad impact pected until such matters are taught in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 159 schools. In this vein, the Board is further de­ pected to be adopted by the Federal Trade veloping educational materials for use in secon­ Commission. dary and adult education classrooms. We are In December the Board assigned the new hopeful of having these ready for formal division the task of carrying out the Board’s classroom use during the 1975-76 school year. responsibilities under Title VIII of the Civil In addition, we are currently working on four Rights Act of 1968. Title VIII forbids discrim­ additional consumer leaflets, which would be ination in the extension of housing credit and distributed by the Board and in conjunction with is enforced by the Board as to State member the General Services Administration’s consumer banks. The Division’s first project was to information program. These leaflets will deal process the information collected for the Board with such problems as credit cards, savings under a pilot survey program. The program, accounts, car loans, and the benefits of prepay­ undertaken last spring, is a joint effort by the ing a loan. four Federal supervisors of financial institutions to develop a means of ascertaining the extent of discrimination in residential housing credit. O FFIC E O F SA V ER The public law mandating the Equal Credit A N D C O N SU M E R A FFA IR S Opportunity and Fair Credit Billing regulations The Board’s Office of Saver and Consumer becomes effective on October 28, 1975. It is Affairs was formed as a new division on August essential that the public be informed of the new 5, 1974, in anticipation of the responsibilities requirements well in advance of that date so that that the Congress was expected to give the creditors can adjust their operations accordingly Board under the Equal Credit Opportunity Act, and consumers can be informed of their new the Fair Credit Billing Act, and the Federal rights. Inasmuch as a minimum of 90 days Trade Commission Improvements Act. The new should be allowed between final adoption of the division assumed existing staff functions under regulation and October 28, 1975, for consumer the Truth in Lending Act and the Securities education and adjustments by lenders, only Exchange Act of 1934. My former duties as the about 8 or 9 months were available for drafting member of the Board with primary respon­ the regulations, obtaining public comment, and sibility for Truth in Lending were expanded to revising the regulations prior to their adoption include all the activities of the Office of Saver by the Board. A special task force was created and Consumer Affairs. in the Division and draft regulations are already The first priority was to recruit a staff to draft nearing completion. regulations under the new legislation. Our re­ Because of this priority, the staff has of cruitment effort is now virtually complete, and necessity concentrated on meeting with con­ I am glad to say that we have been able to sumer and creditor groups in order to inform assemble a group of effective and dedicated itself as to the problems to be covered and on people with excellent backgrounds in both the the actual work of drafting the regulations. consumer credit and the antidiscrimination Also, the very heavy continuing responsibility areas. for interpreting and explaining the truth in lend­ Even before the new division was formally ing and the securities credit regulations could established, the staff had begun preliminary not be neglected. Nevertheless, the staff has had work at the Board’s direction on regulations a primary focus from the beginning on the covering Equal Credit Opportunity and im­ question as to how consumers can best be proved real estate settlement procedures. In an­ equipped with the tools they will need to shop ticipation of legislation being passed by the intelligently for credit and to resist credit dis­ Congress, work began shortly after August 5 crimination that is based on factors other than on regulations to implement the Fair Credit individual creditworthiness. Billing Act and on regulations as to unfair or Two obvious tools are consumer education deceptive acts or practices by commercial and consumer information as to the cost of banks, which would parallel regulations ex­ credit. I have already described the educational Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin □ March 1975 efforts that the Board has undertaken to make loans to individuals for household, family, or consumers aware of Truth in Lending, and sim­ other personal expenditures, auto instalment ilar efforts are in a preliminary planning stage loans by dealers, bankers acceptances, time and as to the regulations implementing the Equal savings deposit rates, debits to demand deposits, Credit Opportunity and the Fair Credit Billing interest rates on loans to business, changes in Acts. bank lending practices, and foreign branch In July 1974, the Board submitted to the assets and liabilities. All of these data are used Senate Committee on Banking, Housing and for the compilation of the many tables published Urban Affairs at the request of Senator Spark­ each month in the Federal Reserve Bulletin. man, the then-Chairman of that committee, an These data are of critical importance to the extensive report concluding that it would be Federal Reserve System in carrying out its stat­ preferable to enact legislation requiring disclo­ utory responsibilities for the formulation and sure to consumers of sufficient information to implementation of monetary policy, and they permit comparison of the relative merits of the are also important to an extensive array of various savings account plans offered rather than outside users, including other Government to select and impose a uniform method of inter­ agencies, banks and other businesses, research est calculation for savings accounts. In this area, organizations, and individual academicians and as well as in the area of credit costs, our other scholars. I might add that, as far as I consumer protection staff has recently begun to know, the data we release exceed that published evaluate the extent to which information in by any other central bank in the world. addition to that already required under the Truth Additional data are collected for regulatory in Lending Act and Regulation Z or under a and supervisory purposes, and the Federal Re­ Truth in Savings Act might be useful to enable serve Banks collect information and data from the consumer to shop more effectively for credit banks in their districts often for research use, or for a return on his savings. such as for studies of regional economic and The staff will be considering, among other financial trends. things, the kinds of information that would Data also are collected for published statisti­ facilitate the consumer’s comparison of credit cal releases from nonbank sources—such as costs or returns on savings among lenders or information from finance companies on the vol­ savings institutions in a given market area, the ume of various types of loans outstanding and feasibility of accumulating and insuring the ac­ new loans made, and information from electric curacy of such information, and the extent to utilities and industrial plants on electric power which the Board’s existing statutory authority for use in the industrial production index calcu­ would allow it to impose such requirements. lations. This data collection program is based in large measure on the voluntary provision of informa­ STA TISTIC A L IN FO R M A TIO N tion, not only by member banks but also in In order for the Board to carry out its many many cases by nonmember banks and other functions with the best possible regard for the financial and nonfinancial businesses. Insofar as public interest, it has become necessary over possible, the Board has attempted to rely on the years to develop a very extensive system voluntary reports rather than on statutory au­ of data collection. thorization because we believe the comprehen­ For example, some of the data collected reg­ siveness and accuracy of the data received in ularly from specially selected samples of banks this manner are superior to what can be obtained include a weekly balance sheet report from large by bureaucratic mandate. commercial banks, commercial and industrial A key element in eliciting this cooperation loans by industry, a maturity distribution of is the confidential treatment accorded the indi­ large certificates of deposit, nondeposit sources vidual bank or firm data submitted to the Board. of funds, ownership of demand deposits, Fed­ This is particularly true in the case of data eral funds transactions, the volume of consumer collected on the basis of sampling procedures, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 161 which the System uses extensively in order to new ways in which these data may be utilized minimize the processing costs and the burden to serve the public, we do not lose sight of the on the respondent. In the case of sampling, great value that already accrues to all Americans individual respondents are at best reluctant to from the present statistical information program. participate in data collection surveys when they In any event, the Board intends, as it designs know that some of their competitors are not and conducts its statistical operations, to look being covered, and it seems clear that many for opportunities to make relevant data available would refuse to participate if they felt that there in a form that would be appropriate to the was risk of disclosure of the data they reported consuming public. because disclosure could reveal and compromise The Board’s consumer-related programs, as the competitive position of the reporting institu­ I have outlined here today, are and will remain tion. Accordingly, the policy of the Board has a high priority. In addition, I want to emphasize been to treat unpublished statistical information that, although my discussion has focused on our submitted in confidence as exempt from public Office of Saver and Consumer Affairs and our disclosure and also to treat as confidential the responsibilities with regard to consumer credit, identities of the individual banks and other in­ our vision is not so narrowly limited and it looks stitutions that participate in sample surveys. beyond to the welfare of consumers generally. Viewed from the standpoint of over-all public Policies adopted by the Board benefit the con­ benefit, there is no doubt that the Board’s sumer by striving for stable prices, a sound present data collection program pays substantial financial system, and a high level of employ­ dividends. The reliability and scope of the data ment and production. assist not only the Board but many government Thank you, Mr. Chairman; I shall be glad agencies, businesses, and scholars. We believe to answer any questions that you or the other it is extremely important that, in searching for members of the subcommittee may have. □ Statement by Arthur F. Burns, Chairman, deal with these problems in the months ahead Board of Governors of the Federal Reserve may well determine whether our country will System, before the Committee on the Budget, return to a stable prosperity or continue to drift U.S. Senate, March 13, 1975. in ways that are gradually sapping the strength of our economic system. I am glad to meet with this committee today In my testimony today, I shall discuss, first, to discuss with you the difficult fiscal and eco­ our immediate economic problems; next, some nomic problems confronting this Nation. disturbing longer-term trends that require atten­ The fiscal decisions that this committee and tion; and finally, the fiscal issues that have the Congress must face are of profound impor­ become the awesome responsibility of this tance to our Nation’s future. A prompt tax committee under the Congressional Budget Act reduction is needed to cushion the recession now of 1974. afflicting our economy. But we must keep in The economy is now in the midst of a severe mind that the Federal deficit in prospect for this decline in business activity. Over the past sev­ and the forthcoming fiscal year is already huge. eral months employment and production have A substantial further increase could put exces­ decreased as rapidly as at any time during the sive strains on money and capital markets, push postwar period. Unemployment has risen up the rate of inflation later on, and reinforce sharply, and the length of the workweek has other long-run trends that have been adversely also been substantially reduced. affecting the performance of the American As so often happens in the course of a reces­ economy. The ways in which we as a people sion, consumer demand for new homes, autos, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin □ March 1975 household furnishings, and other durable financial conditions. Federal Reserve open mar­ goods—items whose purchase can be most eas­ ket operations began to be more accommodative ily postponed—declined markedly last year. last summer. As the year progressed, they were Moreover, weakness became evident also in increasingly directed towards a more ample markets for clothing and other nondurable con­ provision of reserves on the banking system. sumer goods. To avoid a build-up of unsold More recently open market policy has been inventories, business firms began last fall to cut reinforced by other monetary instruments. The back sharply on their production schedules and discount rate was reduced on four occasions, on their orders for materials and supplies. For and three reductions were made in member bank a time sales fell so rapidly, however, that a reserve requirements. substantial involuntary accumulation of inven­ These policy actions, together with weaker tories occurred. demands for credit by businesses and con­ Business firms are now working strenuously sumers, have resulted in a sharp decline of to eliminate excess stocks—through further short-term market interest rates. For example, curtailments of output, special promotions, and the Federal funds rate—that is, the interest rate price concessions. These efforts are meeting banks pay when borrowing reserves from one with some success. Unit sales of new cars have another—has declined from a peak of 13V2 per clearly been bolstered by the price concessions cent registered in July of last year to less than offered by auto manufacturers. Moreover, total 6 per cent now. The interest rate on short-term retail sales, expressed in constant dollars, have commercial paper has declined from over 12 per held up well thus far this year. There is also cent last July to around 6 per cent. The prime some evidence that the physical volume of total loan rate charged by banks has declined by business inventories is now declining. Any such about 4 percentage points. As a result of these decline is bound to have a temporary depressing reductions, short-term interest rates in the effect on production and employment, but it is United States have recently been lower than in an essential precondition for an upturn in busi­ any other major industrial country. ness activity. Long-term interest rates have also declined, A solid recovery, however, will require a although much less than short-term rates. turnaround in housing and in spending for new Lenders are still demanding a sizable inflation plant and equipment by our Nation’s business premium to supply long-term funds, and they firms. New mortgage loan commitments of thrift are doing so in other countries as well as in institutions have risen appreciably in recent the United States. Actually, long-term interest months, the inflow of funds to these institutions rates in our country are lower than in any major is continuing at a rapid rate, and new housing industrial nation except Switzerland. starts also increased somewhat in January. A The beneficial effects of easier conditions in pick-up in homebuilding may therefore be under financial markets have not been confined to the way soon. But some businesses are still post­ behavior of interest rates. Commercial banks poning or canceling plans for constructing new have repaid their borrowings from the Federal facilities or for installing new machinery and Reserve and have taken other steps to improve equipment. Larger business expenditures for their liquidity. Liquidity positions of nonbank fixed capital are now needed to add to the thrift institutions have also improved, and number of jobs and to expand personal incomes, mortgage credit has become more readily avail­ thereby strengthening consumer purchasing able. A large volume of long-term securities has power. Larger investment expenditures are also been successfully marketed by business cor­ needed to provide, later on, the modernized porations and municipal governments; tensions industrial plants and the additional productive and uncertainties surrounding financial markets capacity that are essential to combating infla­ earlier last year have diminished; and stock tionary pressures and raising our living stand­ prices of late have been rising briskly. ards. Thus, the course of monetary policy since last Monetary policy has responded to the weak­ summer has fostered conditions in financial ening in economic activity by promoting easier markets that are helping to mitigate recessionary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 163 forces and to encourage early recovery in eco­ see some end to the inflation that has been nomic activity. However, in view of the contin­ damaging our economy. Public policy, both uing seriousness of the problem of inflation, the now and in the future, must not lose sight of Federal Reserve’s actions to expand the supply this hard-learned truth. of money and credit have been disciplined by A major factor responsible for the acceler­ prudence. True, inflationary pressures of late ating inflation of the past 10 years is fiscal laxity. have shown welcome signs of moderating; for The current round of inflation began when the example, the over all index of wholesale prices Federal Government embarked on a highly ex­ has declined in each of the past 3 months. But pansive fiscal policy in the middle 1960’s. Large wage increases are continuing to exceed pro­ tax reductions occurred in 1964 and the first ductivity changes by a wide margin, and the half of 1965, and they were immediately fol­ consumer price level is still rising at an annual lowed by a rapid increase of Federal spending. rate of about 8 per cent. The menace of inflation New and substantial tax reductions occurred is by no means behind us. Let us not lose sight again in 1969 and 1971, and they, too, were of the fact that the severe recession in which followed by massive increases of expenditures. we find ourselves is largely a consequence of Deficits have therefore mounted, and they neglect in dealing with our persisting inflation. have persisted through good years and bad. In This is one of several longer-range problems to the last five complete fiscal years—that is, from which I want to direct this committee’s atten­ 1970 through 1974—the Federal debt held by tion. the public, including obligations of the Federal Inflation has been a concern of this country, credit agencies, rose from $304 billion to $412 as well as others, throughout most of the period billion, an increase of 35 per cent. The huge since World War II. However, the upward deficits of recent years added enormously to march of prices began to accelerate in the mid­ aggregate monetary demand for goods and ser­ dle 1960’s, and it became dangerously rapid in vices, but they added little to our Nation’s 1973 and 1974. As is characteristic of an infla­ capacity to produce. They have thus been di­ tionary boom, speculative activities flourished, rectly responsible for a substantial part of the particularly in real estate markets, while indus­ inflation problem. trial efficiency languished. During 1973 and While reductions in tax rates contributed to much of 1974, purchasing agents found them­ chronic deficits, by far the largest source of the selves scrambling for materials, component problem came from increases of Federal ex­ parts, and equipment; order books of business penditures. It may be useful to remind ourselves firms became overfull; delays in deliveries be­ of what has recently happened to the rate of came longer and more frequent; costs and prices Federal spending. soared; demands for credit increased rapidly and Total Federal expenditures did not reach the outran available supplies. $100 billion level until fiscal 1962, or nearly As a result of these developments, our Na­ 200 years after the founding of the republic. tion’s productive capacity suffered a setback. By fiscal 1971, only 9 years later, Federal Consumer purchasing power was eroded; the spending rose another $100 billion and thus real value of the wages, savings deposits, pen­ passed the $200 billion mark. This fiscal year, sions, and life insurance policies of the Ameri­ or only 4 years later, the $300 billion mark will can public diminished. Corporate profits de­ be passed, and—at the rate we are going—the clined—a fact that received little notice because $400 billion level may be exceeded in another of accounting techniques that had been designed 2 years, that is, in fiscal 1977. If this trend of for inflation-free times. Financial markets un­ acceleration persists, we will soon be adding derwent exceptional stresses and strains, and $100 billion or more to the total Federal spend­ interest rates soared to record levels. In short, ing every year. inflation led to this recession as it has done time The huge and persistent increases in govern­ and again in the past. mental expenditures, besides being a major We cannot realistically expect to regain last­ cause of intensifying inflationary pressures over ing prosperity until businesses and consumers the past decade, have also been responsible for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin □ March 1975 a weakening of individual enterprise in this corporations from their domestic operations may country. This is the second longer-run problem appear to have been about 16 per cent higher that our Nation must confront. than in 1973 and 45 per cent higher than in Over the past quarter century, governmental 1972. However, the dominant factor in this rise programs have increased markedly the share of was an extraordinary increase in inventory national output going to persons who are not profits—an element of earnings that is illusory. productively employed. Transfer payments by It stems from the fact that the accounting prac­ all governmental units—in such forms as public tices of many corporations still do not allow for welfare, social security benefits, unemployment the fact that inventories used up in production insurance, and other public assistance—have must be replaced at higher prices during a period risen about twice as fast as total wages and of inflation. As a consequence, costs of opera­ salaries, so that they now amount to about tions have been understated, and fictitious prof­ one-fifth of the aggregate of wage and salary its have been created that are being taxed by disbursements. Twenty-five years ago, a typical the Federal Government. worker with three dependents gave up only Once this illusory inventory profit is elimi­ about 1 per cent of his gross weekly earnings nated, we find that the after-tax domestic profits in Federal income and social security taxes. of nonfinancial corporations did not rise last Since then, that fraction has risen steadily, and year. On the contrary, they declined by 20 per it reached 13 per cent in 1974. cent and were smaller than 8 or 10 years ear­ Any large increase in the absorption of private lier—when the dollar value of the output of incomes by Government is bound to raise ques­ these corporations was about half what it is now. tions about economic efficiency. In 1929 gov­ Moreover, when allowance is made for the fact ernmental spending at all levels accounted for that depreciation schedules for fixed capital are less than 11 per cent of the dollar value of our also based on historical costs—rather than re­ Nation’s total production. The corresponding placement costs—and thus contribute yet an­ figure rose to 20 per cent in 1940, 30 per cent other illusory element to book profits, we find in 1960, and 36 per cent in 1974. Higher taxes, that the picture of corporate profits is still in particular, pose a threat to individual incen­ darker. tives—all the more so when taxes are levied The slump in corporate profits during the past on persons who work and produce, and the decade is a major reason why business capital funds are then transferred to others who remain investment has been inadequate to maintain the idle. We are, and I hope that we will always long-term growth of productivity in this remain, a compassionate people, But if we country. This is the fourth longer-range problem continue to seek rapid growth of our national to which I want to call the committee’s atten­ economy, as I believe we still do, we can ill tion. afford to neglect the fundamental precept that The trend of productivity improvement is there must be adequate rewards to stimulate tending to flatten out. During the past decade, individual effort. the average annual increase of productivity in Nor can our Nation afford to neglect the the private nonfarm economy was less than 2 deterioration in corporate profits that has taken per cent, compared with nearly 3 per cent in place over the past decade or more. This is the previous 10 years. Within the past decade, another longer-run problem of major impor­ the rate of improvement in productivity ditance. The ratio of profits of nonfinancial cor­ mished also. This development has a significant porations to the corporate gross product has and cumulative bearing on the living standards been declining rather steadily for many years, of our people, and also on the impact that rising and profits in the aggregate have been far too wage rates have on costs of production and low in recent years to supply the financing prices. needed for vigorous expansion of capital in­ There has been still another ominous conse­ vestment. quence of deteriorating business profits— Last year the pre-tax profits of all nonfinancial namely, a decline in the financial strength of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 165 many of our Nation’s business firms. This is soon reach its decision—either along the lines the fifth longer-term trend that requires atten­ recommended by the President or as embodied tion. in the House bill. If the stimulus to the economy Years ago our Nation’s large business cor­ thus provided proves insufficient, additional porations financed much of their capital invest­ stimulus could be provided 2 or 3 months later. ment from internal sources—that is, from profits The principle underlying the President’s fiscal and depreciation reserves. For more than a dec­ program should, however, be kept clearly in ade, however, dependence on borrowed funds mind. A temporary boost to aggregate demand has been rising steadily. is needed to alleviate recessionary forces, but This growing reliance on borrowed money we must try to accomplish this without adding means that the debt owed by business firms has to Federal deficits over the longer run. kept growing relative to their equity position. The Tax Reduction Act of 1975 passed by Moreover, a large part of the indebtedness has the House (H.R. 2166) is consistent with this been in the form of short-term obligations, and principle because it provides for temporary tax these, in turn, have grown much more rapidly reductions. However, a variety of increases in than holdings of current assets. As a conse­ expenditures are meanwhile in the making, and quence, many large businesses no longer have sentiment is also developing for larger and per­ the strength or resilience they once had in the manent tax reductions. I have become deeply face of economic and financial adversity. concerned, therefore, about the size of our The sixth longer-range problem to which I prospective deficits, and the threat posed by wish to draw your attention is the foreign ex­ these deficits for our money and capital markets change value of the dollar. Actually the dollar and for our longer-run inflationary trend. began weakening many years before it was Let us take stock of where we are and what formally devalued in 1971. Before that, our may happen in the forthcoming fiscal year. In balance of payments had been in deficit for a the current fiscal year total Federal outlays will prolonged period, and the dollar holdings of probably exceed revenues by much more than foreign central banks kept rising steadily. The the $35 billion estimated in the President’s bud­ devaluation of 1971 and also that of 1973 were get message. This enormous deficit is regretta­ thus a consequence of trends that had been under ble, but it reflects largely the effects of the way for many years. recession on Federal tax receipts and on ex­ Since the second devaluation in 1973, the penditures for unemployment insurance and re­ foreign exchange value of the dollar has fluc­ lated programs. In any event, there is no practi­ tuated fairly widely. For example, since last cal means of reducing significantly the deficit September, the average value of the dollar has for fiscal 1975 at this late stage. fallen by about 7 per cent in relation to the For fiscal 1976 the unified budget deficit pro­ currencies of ten major countries. Such fluctua­ jected by the administration just a few weeks tions make it more difficult for foreign traders ago totaled $52 billion, but that figure is merely and investors to make rational plans for the serving as the base on which increases are being future. We must bear this in mind, and also built. The official administration estimate was the fact that any appreciable further decline in raised some days ago to about $54 billion on the external value of the dollar would add to account of the release of previously frozen our domestic inflation problem. highway and hospital construction funds and Let me turn now to the implications for public also because the Congress did not raise the price policy of our immediate and longer-range eco­ of food stamps. The President has just requested nomic difficulties. almost $2 billion additional funds for public The most urgent need at the present time is service jobs and summer youth employment. to cushion the recession. Action to reduce per­ But that is not the end of the matter. If H.R. sonal income taxes and to increase the invest­ 2166 is enacted, in lieu of the administration’s ment tax credit is overdue. The House has tax program, the deficit in fiscal 1976 will rise already acted, and I hope that the Senate will another $5 billion or $6 billion, thus bringing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin □ March 1975 the total to more than $60 billion. Moreover, if even more virulent round of inflation may soon the great bulk of the rescissions, deferrals, and follow. other spending curbs specified in the adminis­ I must advise this committee that the only tration’s budget are rejected by the Congress, responsible course now available to the Federal the deficit will reach about $75 billion. If off- Reserve is to pursue a moderate path of mone­ budget outlays and those of Govern- tary expansion. As I see things, the time re­ ment-sponsored enterprises are also added, as maining for getting control of our Nation’s I believe they should be, the figure mounts to long-run problems is growing short. Certainly more than $90 billion. And if the Congress the people of this country are weary of inflation; provides funding for programs beyond present they are confused and disturbed by the huge estimates or if revenues fall short of present budget deficits that are in the making this fiscal projections, the Federal deficit to be financed year and next; and they are anxiously awaiting in the upcoming fiscal year could exceed $100 evidence that their Government can and will billion. take the necessary steps to restore a stable I cannot stress too strongly the dangers in­ prosperity. herent in a deficit of anything like that magni­ I hope, therefore, that this committee will tude. Much of the financing of the deficit will focus a good deal of its attention on the course occur at a time when private credit demands of public policy needed to cope with the serious will probably be strengthening. Enormous longer-run problems facing the Nation as well strains may therefore be placed on the money as on the actions needed now to encourage early and capital markets. This means that interest recovery of business activity. rates may begin to shoot up, that many private Solving these longer-range problems will re­ borrowers may be crowded out of the market, quire a better measure of discipline in Federal that savings funds may once more be diverted finances. Actions taken to stimulate the econ­ from mortgage lenders, and that the stock mar­ omy now must not erode the tax base, and we ket may turn weak again. must avoid setting off another spiraling rise of With deficits mounting, the Federal Reserve Federal expenditures. Ways must be found to will probably be subjected to pressure from all curb the ever-increasing share of the national sides to follow a highly expansive monetary income absorbed by governmental programs. policy. Every citizen should recognize, how­ Ways must be found also to strengthen business ever, that unbridled monetary and credit expan­ profits and the state of business finances, and sion in circumstances of this kind could have to increase the incentives for expansion of pro­ disastrous consequences. Short-term interest ductive capacity and for modernization of our rates might be held down for a short time by Nation’s industrial plant. permitting the supply of money and credit to Above all, the Congress needs to keep firmly increase apace with soaring credit demands. But in mind that the task now facing our country long-term interest rates would soon be likely to is not only to hasten the process of economic move up rather briskly because lenders and recovery but also to lay the basis for a lasting borrowers alike would realize that a new and prosperity. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

167 Law Department Statutes, regulations, interpretations, and decisions RULES REG ARDING AVAILABILITY OF INFO RM ATIO N (d) Other published information. As required by section 11(a) of the Federal Reserve Act (12 The Board of Governors has revised its Rules U.S.C. 248(a)), the Board issues weekly (1) a Regarding Availability of Information to imple­ statement of the condition of the Federal Reserve ment 1974 Amendments to the Freedom of Infor­ Banks; (2) a statement listing certain applications mation Act. received by or on behalf of the Board and actions on such applications by the Board, or on behalf A M EN D M EN TS TO R U LES of the Board pursuant to authority delegated under R E G A R D IN G A V A ILA B ILITY Part 265 of this chapter, as well as other matters O F IN FO R M A TIO N issued, adopted, or promulgated by the Board; and (3) a statement showing changes in the banking 1. Effective February 19, 1975, section 261.3 structure resulting from mergers and the establish­ is amended to read as follows: ment of branches. From time to time, the Board Section 261.3— Published Information issues statements to the press regarding particular monetary and credit actions, regulatory actions, actions with respect to certain types of applica­ tions, and other matters. In addition, it issues (b) Annual Reports. The Board’s Annual various publications, the more important of which Report to Congress pursuant to section 10 of the are listed in the monthly Federal Reserve Bulle­ Federal Reserve Act (12 U.S.C. 247), which is tin. Among such publications is a loose-leaf made public immediately after its submission to compilation of Interpretations of the Board of Congress, contains a full account of the Board’s Governors of the Federal System. operations during the year, an economic review of the year, and legislative recommendations to Congress. As required by law, the Annual Report (f) Index of Board action. There is available includes (1) a complete record of the policy actions to the public upon request to the Secretary of the taken by the Board and the Federal Open Market Board, at a charge not to exceed the direct cost Committee, showing the votes taken thereon and of duplication, copies of an index providing iden­ the reasons underlying such actions (12 U.S.C. tifying information as to any matter issued, 247a); (2) material pertaining to the administration adopted or promulgated by the Board between July of the Board’s functions under the Bank Holding 4, 1967 and February 19, 1975. Furthermore, the Company Act of 1956 (12 U.S.C. 1844); and (3) Board publishes and distributes to the public, at material pertaining to bank mergers approved by a cost not to exceed the direct cost of duplication, the Board under section 18(c) of the Federal De­ a weekly index providing identifying information posit Insurance Act (12 U.S.C. 1828(c)). as to any matter issued, adopted or promulgated Pursuant to section 114 of the Truth in Lending by the Board after February 19, 1975. Act (15 U.S.C. 1613) the Board reports annually 2. Effective February 19, 1975, section 261.4 to the Congress concerning the administration of is amended to read as follows: its functions under the Act, and includes such recommendations as it deems necessary or appro­ Section 261.4— Records Available to priate, and its assessment of the extent to which the Public Upon Request compliance is being achieved. An annual report is also submitted pursuant to the Freedom of Information Act (5 U.S.C. 552) with regard to (d) Obtaining access to records. Records of requests for information under that Act. the Board subject to this section are available for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin □ March 1975 inspection and copying during regular business the Board in paragraphs (d) and (e) of this section hours at the offices of the Board of Governors of may be extended by written notice to the request­ the Federal Reserve System, Federal Reserve ing party for a period of time not to exceed a total Building, 20th Street and Constitution Avenue, of ten working days. N.W., Washington, D.C. 20551, or, in the case (g) Fee schedule. A person requesting access of records containing information required to be to or copies of particular records shall pay the costs disclosed under section 12 of the Securities Ex­ of searching for and copying such records at the change Act of 1934, as amended (15 U.S.C. 78), rate of $10 per hour for searching and 10 cents at the offices of the Federal Deposit Insurance per standard page for copying. With respect to Corporation or at any Federal Reserve Bank. information obtainable only by processing through Every request for access to records of the Board, a computer or other information systems program, other than those containing information required a person requesting such information shall pay a under section 12 of the Securities Exchange Act, fee not to exceed the direct and reasonable cost shall be submitted in writing to the Secretary of of retrieval and production of the information the Board, shall state the name and address of the requested. Detailed schedules of such charges are person requesting access to such records, shall available upon request from the Secretary of the clearly indicate whether such request is an initial Board. Documents may be furnished without request or an appeal from a denial of information charge or at a reduced charge where the Secretary requested pursuant to the Freedom of Information of the Board or such person as he may designate Act, and shall describe such records in a manner determines that waiver or reduction of the fee is reasonably sufficient to permit their identification in the public interest because furnishing the infor­ without undue difficulty. The Secretary of the mation can be considered as primarily benefiting Board (or, in his absence, an Assistant Secretary the general public or where total charges are less designated by the Secretary) shall determine within than $2. ten working days after receipt of a request for access to records of the Board whether to comply 3. Effective February 19, 1975, section 261.6 with such request; and he shall immediately notify is amended to read as follows: the requesting party of his decision, of the reasons therefor, and of the right of the requesting party to appeal to the Board any refusal to make avail­ Section 261.6—Exemptions From able the requested records of the Board. Disclosure (e) Appeal of denial of access to records of the Board. Any person who is denied access to records of the Board, properly requested in accor­ (1) is exempted from disclosure by statute or dance with paragraph (d) of this section, may file, is specifically authorized under criteria established with the Secretary of the Board, within ten days by an executive order to be kept secret in the of notification of such denial, a written request interest of national defense or foreign policy and for review of such denial. The Board or such is in fact classified pursuant to such executive member or members as the Board may designate, order; shall make a determination with respect to any such appeal within 20 working days of its receipt, shall immediately notify the appealing party of the decision on the appeal and the right to seek court (4) is contained in investigatory files compiled review of any decision which upholds, in whole for law enforcement purposes (but only to the or in part, the refusal of the Secretary of the Board extent provided in the Freedom of Information Act to make available the requested records; and such (5 U.S.C. § 552(b)(7)), including information determination shall not be subject to the procedure relating to proceedings for (i) the issuance of prescribed in § 265.3 of this chapter with respect cease-and-desist order, or order of suspension or to review of actions taken pursuant to authority removal, under the Financial Institutions Supervi­ delegated by the Board. sory Act of 1966; (ii) the termination of member­ (f) Extension of time requirements in unusual ship of a State bank in the Federal Reserve System circumstances. In unusual circumstances as pro­ pursuant to section 9 of the Federal Reserve Act vided in 5 U.S.C. § 552(a)(6)(b), the time limita­ (12 U.S.C. 327); (iii) the suspension of a bank tions imposed upon the Secretary of the Board or from use of the credit facilities of the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 169 Reserve System pursuant to section 4 of the Fed­ As part of the original Federal Reserve Act, eral Reserve Act (12 U.S.C. 301); and (iv) the national banks were, with the Board’s permission, granting or revocation of any approval, permis­ given the power to establish foreign branches.2 In sion, or authority, except to the extent provided 1916, Congress amended the Federal Reserve Act in this Part and except as provided in Part 262 to permit national banks to invest in international of this chapter concerning bank holding company or foreign banking corporations known as and bank merger applications; “Agreement” Corporations, because such cor­ porations were required to enter into an agreement or understanding with the Board to restrict their operations. Subject to such limitations or restric­ M ISCELLA N EO U S IN TER PR ETA TIO N tions as the Board may prescribe, such Agreement Corporations may principally engage in interna­ tional or foreign banking, or banking in a depen­ Foreign Operations Subsidiaries dency or insular possession of the United States, either directly or through the agency, ownership In a previous interpretation, the Board deter­ or control of local institutions in foreign countries, mined that a State member bank would not violate or in such dependencies or insular possessions of the “stock-purchase prohibition” of section 5136 the United States. In 1919 the enactment of section of the Revised Statutes (12 U.S.C. 24 ^ 7) by 25(a) of the Federal Reserve Act (the “Edge Act”) purchasing and holding the shares of a corporation permitted national banks to invest in Federally which performs “at locations at which the bank chartered international or foreign banking cor­ is authorized to engage in business, functions that porations (so-called Edge Corporations) which the bank is empowered to perform directly”1 may engage in international or foreign banking or (1968 Federal Reserve Bulletin 681, 12 CFR other international or foreign financial operations, § 250.141). The Board of Governors has been or in banking or other financial operations in a asked by a State member bank whether, under that dependency or insular possession of the United interpretation, the bank may establish such a so- States, either directly or through the ownership or called “operations subsidiary” outside the United control of local institutions in foreign countries, States. or in such dependencies or insular possessions. In the above interpretation the Board viewed the Edge Corporations may only purchase and hold creation of a wholly-owned subsidiary which en­ stock in certain foreign subsidiaries with the con­ gaged in activities that the bank itself could per­ sent of the Board. And in 1966, Congress amended form directly as an alternative organizational ar­ section 25 of the Federal Reserve Act to allow rangement that would be permissible for member national banks to invest directly in the shares of banks unless “its use would be inconsistent with a foreign bank. In the Board’s judgment, the above other Federal law, either statutory or judicial”. statutory scheme of the Federal Reserve Act evi­ In the Board’s judgment, the use by a member dences a clear Congressional intent that member bank of operations subsidiaries outside the United banks may only purchase and hold stock in sub­ States would be clearly inconsistent with the stat­ sidiaries located outside the United States through utory scheme of the Federal Reserve Act govern­ the prescribed statutory provisions of sections 25 ing the foreign investments and operations of and 25(a) of the Federal Reserve Act. It is through member banks. It is clear that Congress has given these statutorily prescribed forms of organization member banks the authority to conduct operations that member banks must conduct their operations and make investments outside the United States outside the United States. only through gradually adopting a series of specific statutory amendments to the Federal Reserve Act, each of which has been carefully drawn to give the Board approval, supervisory, and regulatory 2Under section 9 of the Federal Reserve Act, State member banks, subject, of course, to any necessary approval from their authority over those operations and investments. State banking authority, may establish foreign branches on the same terms and subject to the same limitations and restrictions as are applicable to the establishment of branches by national National banking associations are prohibited by section banks (12 U.S.C. 321). State member banks may also purchase 5136 of the Revised Statutes from purchasing and holding and hold shares of stock in Edge or Agreement Corporations shares of any corporation except those corporations whose and foreign banks because national banks, as a result of specific shares are specifically made eligible by statute. This prohibition statutory execeptions to the stock purchase prohibitions of is made applicable to State member banks by section 9 H 20 section 5136, can purchase and hold stock in these Corpora­ of the Federal Reserve Act (12 U.S.C. 335). tions or banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin □ March 1975 To summarize, the Board has concluded that and he shall immediately notify the requesting a member bank may only organize and operate party of his decision, of the reasons therefor, and “operations subsidiaries” at locations in the of the right of the requesting party to appeal to United States. Investments by member banks in the Committee any refusal to make available the foreign subsidiaries must be made either with the requested records of the Committee. Board’s permission under section 25 of the Federal (d) Appeal of denial of access to records of Reserve Act or, with the Board’s consent, through the Committee.—Any person who is denied an Edge Corporation subsidiary under section access to records of the Committee, properly re­ 25(a) of the Federal Reserve Act or through an quested in accordance with paragraph (c) of this Agreement Corporation subsidiary under section section, may file, with the Secretary of the Com­ 25 of the Federal Reserve Act. In addition, it mittee, within ten days of notification of such should be noted that bank holding companies may denial, a written request of such denial. The acquire the shares of certain foreign subsidiaries Committee, or such member or members as the with the Board’s approval under section 4(c)(13) Committee may designate (pursuant to section of the Bank Holding Company Act. These statu­ 272.4(c) of its Rules of Procedure) shall make a tory sections taken together already give member determination with respect to any such appeal banks a great deal of organizational flexibility in within 20 working days of its receipt, and shall conducting their operations abroad. immediately notify the appealing party of the de­ cision on the appeal and of the right to seek court FED ER A L O PEN M A R K ET review of any decision which upholds in whole C O M M ITTEE or in part, the refusal of the Secretary of the Committee to make available the requested records. RULES REG ARDING AVAILABILITY (e) Extension of time requirements in unusual OF INFORM ATION circumstances.—In unusual circumstances as The Federal Open Market Committee has provided in 5 U.S.C. § 552 (a)(6)(b), the time amended its Rules Regarding Availability of In­ limitation imposed upon the Secretary of the formation to implement the 1974 Amendments to Committee or the Committee or its designated the Freedom of Information Act. representative [s] in paragraphs (c) and (d) of this section may be extended by written notice to the 1. Effective February 19, 1975, section 271.4 requesting party for a period of time not to exceed is amended to read as follows: a total of ten working days. (f) Fee schedule.—A person requesting access Section 271.4— Records Available to to or copies of particular records shall pay the costs of searching and copying such records at the rate the Public on Request of $10 per hour for searching and 10 cents per standard page for copying. With respect to infor­ mation obtainable only by processing through a computer or other information systems program, (c) Obtaining access to records.—Any person a person requesting such information shall pay a requesting access to records of the Committee shall fee not to exceed the direct and reasonable cost submit such request in writing to the Secretary of of retrieval and production of the information the Committee. In any case in which the records requested. Detailed schedules of such charges are requested, or copies thereof, are available at a available upon request from the Secretary of the Federal Reserve Bank, the Secretary of the Com­ Committee. Documents may be furnished without mittee may so advise the person requesting access charge or at a reduced charge where the Secretary to the records. Every request for access to records of the Committee or such person as he may desig­ of the Committee shall state the full name and nate determines that waiver or reduction of the address of the person requesting them and shall fee is in the public interest because furnishing the describe such records in a manner reasonably information can be considered as primarily bene­ sufficient to permit their identification without fiting the general public, or where total charges undue difficulty. The Secretary of the Committee are less than $2. shall determine within ten working days after receipt of a request for access to records of the 2. Effective February 19, 1975 section 271.6 Committee whether to comply with such request; is amended to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 171 Section 271.6— Information Not Section 272.3— M eetings Disclosed (d) Attendance at meetings.—Attendance at (a) is exempted from disclosure by statute or Committee meetings is restricted to members and is specifically authorized under criteria established alternate members of the Committee, the Pres­ by an executive order to be kept secret in the idents of Federal Reserve Banks who are not at interest of national defense or foreign policy and the time members or alternates, staff officers of is in fact properly classified pursuant to such the Committee, the Manager and Deputy Manag­ executive order. ers, and such other advisers as the Committee may invite from time to time. ^ jfc # (e) Meeting agendas.—The Secretary, in con­ sultation with the Chairman, prepares an agenda FEDERAL OPEN MARKET of matters to be discussed at each meeting and the Secretary transmits the agenda to the members COMMITTEE of the Committee within a reasonable time in advance of such meeting. In general, the agendas RULES OF ORG ANIZATIO N AND include approval of minutes of actions and accep­ RULES OF PRO CEDURE tance of memoranda of discussion for previous meetings; reports by the Manager or Deputy Man­ The Federal Open Market Committee of the agers on open market operations since the previous Federal Reserve System has approved a realign­ meeting, and ratification by the Committee of such ment of staff personnel who supervise System open operations; reports by Economists on, and Com­ market operations under the Committee’s direction mittee discussion of, the economic and financial at the New York Reserve Bank. The following situation and outlook; Committee discussion of revisions of the Committee’s Rules are designed monetary policy and action with respect thereto; to reflect this staff personnel realignment. and such other matters as may be considered necessary. A M EN D M EN T TO R U LES O F O R G A N IZ A T IO N REGULATION RELATING TO OPEN Effective February 19, 1975, section 5 of the M ARKET O PERATIO NS OF FEDERAL Committee’s Rules of Organization is amended to RESERVE BANKS read as follows: Section 5— M anager and Deputies The Federal Open Market Committee has re­ vised its Regulation Relating to Open Market The Committee selects a Manager of the System Operations of Federal Reserve Banks to authorize Open Market Account, a Deputy Manager for Reserve Banks other than the New York Reserve Domestic Operations, and a Deputy Manager for Bank to purchase certificates of indebtedness di­ Foreign Operations. All of the foregoing shall be rectly from the Treasury under circumstances other satisfactory to the Federal Reserve Bank selected than only when the New York Reserve Bank is by the Committee to execute open market transac­ closed. tions for such Account, and all shall serve at the pleasure of the Committee. The Manager or his A M EN D M EN T TO R E G U L A TIO N Deputies keep the Committee informed on market R ELA TIN G TO O PEN M A R K ET conditions and on transactions they have made and render such reports as the Committee may specify. O PER A TIO N S O F FED E R A L R ESER V E B A N K S A M EN D M EN T TO R U LES O F PR O C ED U R E Effective January 30, 1975, section 270.4 of the Committee’s Regulation Relating to Open Market Effective February 19, 1975, section 272.3 is Operations of Federal Reserve Banks is revised amended to read as follows: to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin □ March 1975 Section 270.4— Transactions in mittee, the Reserve Bank selected by the Commit­ tee (or, under special circumstances, such as when Obligations that Bank is closed, any other Federal Reserve Bank) is authorized and directed, for its own account or the System Open Market Account, to purchase directly from the United States such (d) In accordance with such limitations, terms, amounts of Government securities as may be nec­ and conditions as are prescribed by law and in essary from time to time for the temporary ac­ authorizations and directives issued by the Com­ commodation of the Treasury Department. B A N K H O L D IN G C O M P A N Y A N D B A N K M E R G E R O R D E R S ISSU E D B Y T H E B O A R D O F G O V E R N O R S ORDERS UNDER SECTION 3 OF BANK 3(a)(1) of the Bank Holding Company Act (12 U.S.C. 1842(a)(1)) of formation of a bank holding H OLDING CO M PANY ACT company through acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) First Ogden Corporation, of the successor by merger to Bank of Naperville, N aperville, Illinois Naperville, Illinois (“Bank”). The bank into Order Denying Formation of Bank Holding Company which Bank is to be merged has no significance except as a means to facilitate the acquisition of First Ogden Corporation, Naperville, Illinois, the voting shares of Bank. Accordingly, the has applied for the Board’s approval under § proposed acquisition of the shares of the successor 3(a)(1) of the Bank Holding Company Act (12 organization is treated herein as the proposed ac­ U.S.C. 1842 (a)(1)) to become a bank holding quisition of the shares of Bank. company through acquisition of 100 per cent of At the same time, Applicant has applied for the the voting shares (less directors’ qualifying shares) Board’s approval pursuant to § 4(c)(8) of the Act of the Bank of Naperville, Naperville, Illinois. (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the Notice of the application, affording opportunity Board’s Regulation Y to retain three nonbanking for interested persons to submit comments and subsidiaries engaged, respectively, in commercial views has been given (39 Federal Register 27837). finance (First Claren Corporation), full payout The time for filing comments and views has ex­ leasing of personal property (Firstline Leasing pired, and the Board has considered the application Corporation), and data processing activities (First and all comments received in light of the factors Data Services). Such activities have been deter­ set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). mined by the Board in § 225.4(a)(l)(6)(a) and On the basis of the record, the application is (8)(i) of Regulation Y as permissible for bank denied1 for the reasons set forth in the Board’s holding companies, subject to Board approval of Statement, which will be released at a later date. individual proposals in accordance with the proce­ By order of the Board of Governors, effective dures of § 225.4(b). January 27, 1975. Notice of the applications, affording opportunity Voting for this action: Chairman Burns and Governors for interested persons to submit comments and Mitchell, Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Governor Wallich. views, has been given in accordance with §§ 3 and 4 of the Act. The time for filing comments (Signed) Theodore E. Allison, [seal] Secretary of the Board. and views has expired, and the Board has consid­ ered the applications and all comments received *In view of the Board’s action with respect to the application in light of the factors set forth in § 3(c) of the to become a bank holding company, consideration of a con­ Act and the considerations specified in § 4(c)(8) current application filed by Applicant to retain three nonbank­ of the Act. ing subsidiaries becomes moot. Applicant was incorporated in 1968 for the Statement Denying Formation of Bank Holding purpose of organizing new banks in the western Company suburbs of Chicago and subsequently became en­ First Ogden Corporation, Naperville, Illinois, gaged in providing a variety of services, including has applied for the Board’s approval under § management advisory services, for the banks it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 173 organized as well as for other banks.1 As of August munity to be served are also consistent with ap­ 9, 1974, Applicant was providing services to some proval of the application. 18 client banks. In most instances, the services In the course of the processing of this proposal, are provided pursuant to a management contract the Board has carefully considered the nature and entered into by Applicant and the client bank scope of the services that Applicant presently which provides that the fee paid to Applicant is provides to its client banks. In connection with based on the total footings of the bank rather than the application to form a bank holding company, consideration for services rendered. In addition to Applicant originally proposed that it would con­ owning up to 5 per cent of the voting shares in tinue to provide a wide range of advisory services five of the client banks, Applicant controls seven to its client banks. However, while the application nonbanking subsidiaries. As part of this proposal, was pending, the Board amended Regulation Y Applicant is seeking to retain three of its subsidi­ by adding § 225.4(a)(12), which provides the aries which are engaged in activities which the manner and circumstances under which a bank Board has determined to be closely related to holding company may provide management advice banking. to nonaffiliated banks. Since the activities engaged Bank, one of Applicant’s client banks, was in by Applicant with respect to its client banks chartered by the State in 1957 and is a nonmember, are clearly not permissible under the amendment Federally-insured bank. With deposits of $49 mil­ to Regulation Y, Applicant amended its applica­ lion, Bank is the second largest of three banks tion and indicated that the advisory services that in the city of Naperville, a suburb of Chicago, it performs for its client banks would be shifted and competes with many substantially larger to Bank through the establishment of a banking banking organizations in the Chicago banking services division within Bank. Thus, under the market where it holds .12 of 1 per cent of the application as presently constituted, it is proposed total deposits in the market.2 On the basis of the that Bank would provide to the client banks ser­ facts of record, it does not appear that consumma­ vices substantially similar to those now offered by tion of Applicant’s proposal would eliminate any Applicant. In other words, Applicant is attempting existing competition, foreclose the development of to engage indirectly through Bank in activities potential competition, nor result in an increase in which it is precluded from performing directly the concentration of banking resources. Accord­ under the Bank Holding Company Act and the ingly, competitive considerations are consistent Board’s regulation. with Applicant’s proposal to acquire Bank. In view of the attempt by Applicant to circum­ The finanical condition and managerial re­ vent the provisions of the Act and the Board’s sources of Applicant and of Bank are regarded as Regulation Y, the Board was particularly inter­ being generally satisfactory and the prospects of ested in determining whether the advisory services each appear favorable. In connection with this that were to be transferred to Bank were permissi­ proposal, Applicant proposes to augment Bank’s ble activities for a State bank under Illinois law. capital upon consummation of the formation. In this connection, the Acting Commissioner of These considerations relating to the banking fac­ Banks, in responding to a request for his views tors are consistent with approval of the application. on the application noted: “In my opinion, some It appears that consummation of the proposal to of the activities, at least in the group of banking acquire Bank would have no immediate effect on services to be rendered, are not within those char­ area banking needs; however, considerations re­ tered authorities granted to a State bank.”3 Ac­ lating to the convenience and needs of the com- cordingly, in view of the opinion of the Acting Commissioner, there exists a presumption that Bank could not legally perform all the advisory ^he services Applicant provides include advertising, audit­ services for the client banks which are contem­ ing, automation, assistance to new and existing banks on building and remodeling design, correspondent bank relation­ plated by the application before the Board. Since ships, cost analysis, deposit relationships, banking forms—de­ the performance of these advisory services is an sign and use, securing from insurers bankers blanket bond integral element in the proposal of Applicant and insurance on a group basis, interbank communication, land acquisition—site location and analysis for bank expansion, loan since it appears that some of the activities are counselling and participations, long range planning, marketing research, personnel training and selection, portfolio counsel­ ling, public relations, educational programs for directors, as­ sisting banks in communicating with stockholders, trans­ 3Letter of October 28, 1974, addressed to the Secretary of portation needs—courier services, and legislative relationships. the Board of Governors from Richard K. Lignoul, Acting 2All banking data are as of June 30, 1974. Commissioner of Banks and Trust Companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin □ March 1975 impermissible to Bank under State law, the Board, the Board opined that furnishing or providing in the exercise of its responsibility under the Bank services to nonsubsidiary banks was prohibited by Holding Company Act, does not believe it would the section, since to conclude otherwise “would be in the public interest to approve a plan that make it possible for a bank holding company . . . by its very nature appears to be in violation of to acquire effective control of banks without State law. acquiring bank stocks and thus to evade the un­ In light of the above discussion, it is the Board’s derlying objectives of section 3 of the Act.” (12 judgment that consummation of the proposal C.F.R. 225.113). would not be in the public interest and that the In amending Regulation Y to permit bank hold­ application should, therefore, be denied. ing companies to provide management advice to nonaffiliated banks, the Board carefully delineated Voting for this action: Chairman Burns and Governors the scope of the services and the manner in which Mitchell, Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Governor Wallich. In view of the Board’s they could be offered so as to avoid the possibility action with respect to the application to become a bank holding that a bank holding company would acquire con­ company, consideration of a concurrent application filed by Applicant to retain three nonbanking subsidiaries becomes trol of banks to which it provides services (12 moot. C.F.R. 225.131). The circumstances under which Bank of Naperville would perform the advisory Concurring Statement of services to the client banks are substantially at Governors Mitchell and Coldwell variance with the criteria set down by the Board in § 225.4(a)(12) of Regulation Y in that Applicant While we concur in the Board’s action in deny­ holds equity securities in some of the client banks; ing the application of First Ogden Corporation to various officers and directors of Applicant serve become a bank holding company through the ac­ in a similar capacity with the client banks; and quisition of Bank of Naperville, we wish to elabo­ the services are performed on a daily or continuous rate on the reasons we believe such action is basis. In order to avoid the strictures placed on clearly warranted by the underlying purposes of the offering of advisory services to nonaffiliated the Bank Holding Company Act. banks, Applicant proposes to transfer the per­ As noted in the majority’s Statement, Applicant formance of these advisory services to Bank and presently performs management advisory services thereafter to continue to do indirectly what it is for 18 client banks located in Illinois. Applicant prohibited from doing directly under the Act and originally proposed to continue such activities after the Board’s Regulation. To approve Applicant’s the acquisition of the Bank of Naperville. How­ proposal to become a bank holding company ever, during the processing of the proposal, the would countenance Applicant’s efforts to circum­ Board amended Regulation Y to permit bank vent the underlying purposes of the Act and the holding companies to provide management con­ provisions of the Board’s Regulation. In our judg­ sulting advice to nonaffiliated banks (12 C.F.R. ment, such action would not be in the public § 225.4(a)(12)). Since many of the services of­ interest and, accordingly, the application should fered by Applicant to its client banks would not be denied. be permissible under the amended regulation, both February 24, 1975 because of the nature of the services and the manner in which they are performed, Applicant amended its proposal and indicated that the per­ Colonial Bancorp, Inc., formance of the management advisory services W aterbury, Connecticut would be transferred to Bank of Naperville. In this Order Approving Acquisition of Bank manner, Applicant hopes to avoid those restric­ tions that the Board has placed on the circum­ Colonial Bancorp, Inc., Waterbury, Connecti­ stances under which a bank holding company may cut, a bank holding company within the meaning directly offer management advice to nonaffiliated of the Bank Holding Company Act, has applied banks. for the Board’s approval under § 3(a)(3) of the Under section 4(a)(2) of the Act, a bank holding Act (12 U.S.C. 1842(a)(3)) to acquire all of the company is permitted generally to engage in the voting shares of Second New Haven Bank, New business of managing or controlling banks or of Haven, Connecticut. furnishing services to or performing services for Notice of the application, affording opportunity its subsidiaries. In interpreting this statutory pro­ for interested persons to submit comments and vision prior to the 1970 Amendments to the Act, views, has been given in accordance with § 3(b) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 175 of the Act. The time for filing comments and views of existing competition would be eliminated as a has expired, and the Board has considered the result of this proposal. However, on balance, the application and all comments received in light of Board believes that the effects on existing compe­ the factors set forth in § 3(c) of the Act (12 U.S.C. tition would not be significant. 1842(c)). In assessing the effects of the proposal on po­ Applicant controls one bank, The Colonial Bank tential competition, the Board notes that Connec­ and Trust Company, with deposits of $332.4 mil­ ticut’s banking law contains a home office protec­ lion, representing 4.8 per cent of the total deposits tion provision which generally prohibits branching in commercial banks in the State, and is the into towns where the home office of another bank seventh largest commercial banking organization is located. Applicant’s subsidiary is prohibited in Connecticut. Bank is the tenth largest commer­ from branching into New Haven and Bank is cial banking organization in the State and holds precluded from branching into Waterbury. deposits of $202.3 million, representing 2.9 per “Open” towns exist in both the New Haven and cent of the deposits in commercial banks in the Waterbury markets into which Applicant or Bank State.1 Acquisition of Bank would increase Appli­ could branch and there are a limited number of cant’s deposits to $534.7 million (about 8 per cent smaller banks available for acquisition; however, of the deposits in the State) and would result in neither branching nor a smaller acquisition would it becoming the fourth largest commercial banking enable Applicant or Bank to compete effectively organization in Connecticut. In view of the struc­ in the principal city of the other’s market. More­ ture of banking in Connecticut, the Board does over, Bank’s history of expansion and growth not regard the increase in concentration that would indicates that, absent affilation with Applicant, result from this proposal as a factor warranting Bank is unlikely to expand into the Waterbury denial. market. Although Applicant’s de novo entry into Bank is the second largest banking organization the City of New Haven is possible, in view of in the New Haven market (approximated by the the apparent difficulties of obtaining a national New Haven RMA) by virtue of its control of 20.8 charter or of Applicant affiliating with a newly per cent of the commercial bank deposits in the chartered State bank, such entry by Applicant market. Applicant’s subsidiary bank also operates appears remote. Accordingly, on the basis of the offices in the New Haven market and, as a result facts of record, the Board concludes that consum­ of the consummation of this proposal, Applicant mation of the proposed transaction would not have would control approximately 24.2 per cent of the a significantly adverse effect on potential competi­ deposits in the market. However, the State’s three tion. largest banking organizations (CBT Corporation, The financial condition and managerial re­ Northeast Bancorp, Inc., and Hartford National sources of Applicant and Bank appear to be gen­ Corporation) have offices in the market and to­ erally satisfactory and consistent with approval of gether they account for about 28.1 per cent of the the application. As a result of the acquisition, total commercial bank deposits in the market. The Bank will decrease or eliminate service charges Board views this proposal, therefore, as an appro­ on demand deposit accounts, increase interest rates priate means whereby Applicant would enhance on time and savings deposits, lower interest rates its ability to compete more effectively with these on retail instalment loans and improve the avail­ largest organizations operating in the market. ability of mortgage financing in the New Haven As noted above, Applicant is presently repre­ area. In the New Haven market, Bank will be able sented in the New Haven market; however, Ap­ to offer expanded services to Connecticut’s largest plicant’s subsidiary bank, which is headquartered banking customers and generally be able to com­ in Waterbury, competes primarily in the Waterpete more effectively with larger banking organi­ bury market. In the New Haven market, Appli­ zations operating in that market. Therefore, con­ cant’s subsidiary operates a total of five offices, siderations relating to convenience and needs lend all of which are located on the fringe of the market weight toward approval and outweigh any slight and do not appear to exert a significant competitive anticompetitive effects on existing competition that influence on the economic hub of the market, the may result from the proposed transaction. Ac­ city of New Haven. Since both Applicant and cordingly, it is the Board’s judgment that con­ Bank operate in the same market, some amount summation of the proposed transaction would be in the public interest and that the application *State banking data are as of June 30, 1974. should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin □ March 1975 On the basis of the record, the application is nificant existing competition between Colonial and approved for the reasons summarized above. The Second New Haven. transaction shall not be made (a) before the thir­ Furthermore, the proposal will foreclose signif­ tieth calendar day following the effective date of icant future competition that would be expected this Order or (b) later than three months after the to develop between the two banking organizations effective date of this Order, unless such period in the New Haven market. Applicant has already is extended for good cause by the Board, or by exhibited its ability to participate in the New the Federal Reserve Bank of Boston pursuant to Haven market by establishing five branch offices delegated authority. and, given its significant size and resources, we By order of the Board of Governors, effective believe that Applicant would expand further into February 11, 1975. those cities in the market that are open to branch­ ing. Also, Second New Haven, as evidenced by Voting for this action: Chairman Burns and Governors Mitchell, Sheehan, and Bucher. Voting against this action: its present size and position in the New Haven Governors Holland, Wallich, and Coldwell. banking market is a significant competitive force (Signed) Theodore E. Allison, as demonstrated by its ability and willingness to [seal] Secretary of the Board. expand and grow. This proposal would eliminate Second New Haven as an independent banking Dissenting Statement of alternative. Therefore, denial of this application Governors Holland, Wallich, and Coldwell would preserve the possibility that Applicant would choose some less anticompetitive means to We would deny the application of Colonial expand its interests in the market, while at the Bancorp to acquire Second New Haven Bank same time preserving Second New Haven as a because of adverse effects the proposal would have viable competitive alternative. on the concentration of banking resources in the The majority has concluded that the anticompe­ New Haven market as well as on existing and titive effects of the proposal are outweighed by future competition in that market. In our view, benefits that would accrue to the public. We dis­ these adverse effects are not outweighed by other agree with that conclusion. Several of the largest considerations reflected in the record and, accord­ banking organizations in the State are already ingly, the application should be denied. represented in the New Haven market, and the Although The Colonial Bank and Trust, Appli­ combination of Applicant and Second New Haven, cant’s sole banking subsidiary, is headquartered each of which has operated as an effective inde­ in Waterbury and operates primarily in the Waterpendent competitior in the past, cannot be ex­ bury banking market, it also has five offices in pected, in our judgment, to result in any substan­ the New Haven market and holds about $30 mil­ tial benefits to the public. lion, or 3.4 per cent, of the total deposits in the For the foregoing reasons, we would deny the New Haven market, making it the seventh largest application. banking organization in that market. Second New Haven Bank is the second largest banking organi­ zation in the New Haven market with approxi­ Tennessee Valley Bancorp, Inc., mately 21 per cent of the market’s deposits. In N ashville, Tennessee view of the already high level of deposit concen­ Order Denying Acquisition of Bank tration in the market (the four largest banking organizations hold 75 per cent of the deposits), Tennessee Valley Bancorp, Inc., Nashville, we are concerned about the further increase in Tennessee, a bank holding company within the level of concentration that would result from this meaning of the Bank Holding Company Act, has proposal. applied for the Board’s approval under § 3(a)(3) In addition to the adverse effects on concentra­ of the Act (12 U.S.C. 1842(a)(3)) to acquire all tion, the proposal will result in the elimination of of the voting shares of Valley Fidelity Bank and existing competition between Applicant’s subsidi­ Trust Company, Knoxville, Tennessee (“Bank”). ary and Second New Haven. Colonial has one Notice of the application, affording opportu­ office in the market only one mile from an office nity for interested persons to submit comments and of Second New Haven; its other four offices in views, has been given in accordance with § 3(b) the market are anywhere from four to fifteen miles of the Act. The time for filing comments and views from offices of Second New Haven. Accordingly, has expired, and the Board has considered the we conclude that the proposal will eliminate sig­ application and all comments received in light of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 111 the factors set forth in § 3(c) of the Act (12 U.S.C. With respect to convenience and needs consid­ 1842(c)). erations, Applicant proposes to expand the serv­ Applicant, the fourth largest commercial bank­ ices presently offered by Bank to include: equip­ ing organization in Tennessee, controls 12 banks ment leasing, factoring, accounts receivable fin­ with aggregate deposits of about $909 million, ancing, international banking services, and invest­ representing approximately 7.9 per cent of total ment management services. While these consid­ deposits held by commercial banks in the State.1 erations relating to the convenience and needs of Acquisition of Bank (deposits of about $94.5 mil­ community to be served lend some weight toward lion) would increase Applicant’s share of com­ approval of the application, they do not outweigh mercial bank deposits in the State by approxi­ the adverse findings with respect to the financial mately .8 of one per cent, and Applicant would factors involved in Applicant’s proposal. become the State’s third largest banking organi­ Based upon the foregoing and other consid­ zation. erations reflected in the record, the Board con­ Bank, the third largest of 14 banks in the cludes that the financial considerations involved Knoxville area banking market,2 controls approxi­ in the proposal present adverse factors bearing on mately 8.9 per cent of the total deposits in com­ the financial condition and future prospects of mercial banks in this market. Applicant is not Applicant and Bank. Such adverse factors are not presently represented in the Knoxville banking outweighed by any procompetitive effects or by market, and its closest subsidiary is located 67 the benefits which would result in serving the miles northeast of Bank in a separate banking convenience and needs of the community. Ac­ market. It appears from the record that no signifi­ cordingly, it is the Board’s judgment that approval cant existing competition would be eliminated as of the application would not be in the public a result of this proposal. On the other hand, the interest and that the application should be, and proposal would result in the foreclosure of de novo hereby is, denied. entry. Due to population and deposits per banking By order of the Board of Governors, effective office ratios higher than that for the State as a February 25, 1975. whole, the Knoxville area banking market appears Voting for this action: Vice Chairman Mitchell and Gover­ to be relatively attractive for- de novo entry. Ap­ nors Sheehan, Bucher, and Wallich. Absent and not voting: plicant has previously used de novo entry as a Chairman Burns and Governors Holland and Coldwell. means of entering the Chattanooga and Memphis (Signed) Theodore E. Allison, banking markets. Thus, Applicant may be re­ [seal] Secretary of the Board. garded as a possible de novo entrant into the Knoxville market. Accordingly, based on the ORDER UNDER SECTIO N 4 OF BANK foregoing and other facts of record, the Board HOLDING COM PANY ACT concludes that consummation of the proposed ac­ quisition would have slight adverse effects on American Bancorporation, Inc., potential competition. St . Paul, M innesota The present proposal is not an exchange of stock but contemplates an immediate cash outlay in Order Approving Acquisition of Glasser-American excess of $9 million. In this connection, the Board Mortgage Company notes that the capital of Applicant’s lead bank has American Bancorporation, Inc., St. Paul, Min­ not grown at a rate comparable with its assets nesota, a bank holding company within the mean­ growth, and its present capital position is lower ing of the Bank Holding Company Act, has ap­ than what the Board regards as desirable. In these plied for the Board’s approval, under section circumstances, it would be preferable for Appli­ 4(c)(8) of the Act and § 225.4(b)(1) of the Board’s cant to use its resources to augment the capital Regulation Y, to acquire all of the voting shares position of its lead bank rather than for expansion of Glasser-American Mortgage Company of Applicant’s banking interests at this time. Ac­ (“GAMC”), Englewood Cliffs, New Jersey, a cordingly, based on the foregoing, the Board con­ proposed new company that would engage in the cludes that considerations relating to the financial activities of a mortgage banker, including origi­ aspects of Applicant’s proposal weigh against ap­ nating, selling, and servicing mortgage loans for proval of the application. its own account or for the accounts of others. Such activities have been determined by the Board to *A11 banking data are as of June 30, 1974. be closely related to banking (12 CFR 225.4(a)(1) 2 The Knoxville area banking market is approximated by Anderson, Blount, and Knox counties. and (3)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin □ March 1975 Notice of the application, affording opportunity plication is hereby approved. This determination for interested persons to submit comments and is subject to the conditions set forth in section views on the public interest factors, has been duly 225.4(c) of Regulation Y and to the Board’s au­ published (39 Federal Register 39912). The time thority to require such modification or termination for filing comments and views has expired, and of the activities of a holding company or any of the Board has considered the application and all its subsidiaries as the Board finds necessary to comments received in the light of the public inter­ assure compliance with the provisions and pur­ est factors set forth in section 4(c)(8) of the Act poses of the Act and the Board’s regulations and (12 U.S.C. 1843(c)(8)). orders issued thereunder, or to prevent evasion Applicant, the fourth largest banking organi­ thereof. zation in Minnesota, controls five banks with ag­ The transaction shall be made not later than gregate deposits of $325 million, representing 2.6 three months after the effective date of this Order, per cent of the total deposits in commercial banks unless such period is extended for good cause by in the State.1 Applicant also engages in such the Board or by the Federal Reserve Bank of nonbanking activities as personal property leasing, Minneapolis, pursuant to delegated authority. commercial finance, and insurance activities. By order of the Board of Governors, effective GAMC will operate out of an office in Eng­ February 12, 1975. lewood Cliffs, New Jersey, and will primarily Voting for this action: Governor Sheehan, Bucher, Holland, serve the metropolitan New York market.2 Com­ and Coldwell. Voting against this action: Vice Chairman peting in that market are 115 commercial banking Mitchell. Absent and not voting: Chairman Burns and Gover­ organizations, at least 50 thrift institutions, and nor Wallich. over 70 other firms which engage in the origination (Signed) Theodore E. A llison, of mortgages. It would appear that no significant [seal] Secretary of the Board. existing or future competition would be eliminated Dissenting Statement upon approval of the application. Moreover, entry of Vice Chairman Mitchell by Applicant on a de novo basis into this field should produce benefits to the public by adding I would deny the application of American Ban­ an additional competitor that offers this specialized corporation to engage de novo through a subsidi­ service. ary, Glasser-American, in mortgage banking ac­ In its consideration of this application, the tivities. Unlike the majority, I believe that con­ Board has examined a covenant not to compete summation of the proposed transaction would not contained in an employment agreement between produce meaningful benefits to the public by add­ GAMC and its proposed chief executive. The ing an additional competitor in the metropolitan Board finds that the provisions of this covenant New York mortgage banking market. Further­ are reasonable in scope, duration, and geographic more, I do not believe a holding company of area and are consistent with the public interest. Applicant’s size can expand into a market nearly There is no evidence in the record indicating 1,000 miles distant from its home office without that consummation of the proposed transaction encountering serious problems of control and would result in any undue concentration of re­ supervision. Ventures of this type may be justified sources, unfair competition, conflicts of interests, from the corporate interest, but this potential risk unsound banking practices, or other adverse ef­ to the Applicant’s public obligation is not justified. fects on the public interest. For these reasons, I do not regard the proposal Based upon the foregoing and other consid­ as being in the public interest, and would deny erations reflected in the record, the Board has the application. determined that the balance of the public interest factors the Board is required to consider under ORDER UNDER SECTIONS 3 AND 4 section 4(c)(8) is favorable. Accordingly, the ap­ OF BANK H O LDING COM PANY ACT Stuarco Oil Company, Inc., *A11 banking data are as of December 31, 1973, and reflect bank holding company formations and acquisitions approved Denver, Colorado through November 30, 1974. Order Denying Acquisition of Bank and Engaging in 2The metropolitan New York market includes New York Insurance Agency Activities City, all of Nassau, Putnam, Rockland and Westchester Coun­ ties and western Suffolk County in New York; northern Bergen Stuarco Oil Company, Inc., Denver, Colorado, County and eastern Hudson County in New Jersey, and part of Fairfield County in Connecticut. a bank holding company within the meaning of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 179 the Bank Holding Company Act,1 has applied for tion between these banks is minimal in view of the Board’s approval under § 3(a)(3) of the Act the relatively small market shares of both banks (12 U.S.C. 1842(a)(3)) to acquire 80 per cent or and the presence of some 65 competing banks more of the voting shares of Alameda National located within the areas served by the two banks. Bank (“Bank”), Lakewood, Colorado. Furthermore, on balance, the Board is of the view At the same time, Applicant has applied for the that this proposal could have a positive effect on Board’s approval under § 4(c)(8) of the Act (12 competition by creating an additional multi-bank U.S.C 1843(c)(8)) and § 225.4(b)(2) of the holding company to compete in the Denver bank­ Board’s Regulation Y, to engage de novo in certain ing market. Accordingly, the Board concludes that insurance agency activities in connection with its competitive considerations lend some weight proposed acquisition of Bank. Such activities have toward approval of the application. been determined by the Board to be closely related Under the Bank Holding Company Act, the to banking (12 CFR 225.4(a)(9)). Board is required to consider the financial and Notice of the receipt of the applications, afford­ managerial resources and future prospects of the ing opportunity for interested persons to submit holding company and its subsidiary banks. In the comments and views, has been given in accor­ exercise of that responsibility, the Board finds that dance with §§ 3 and 4 of the Act (39 Federal considerations relating to the financial resources Register 37830). The time for filing comments and of Applicant warrant denial of the application. The views has expired, and all comments and views Board has previously stated that less restrictive received have been considered by the Board in debt-equity standards can appropriately be applied light of the factors set forth in § 3(c) of the Act to prospective one-bank holding companies if the (12 U.S.C. 1842(c)) and § 4(c)(8) of the Act (12 adverse effects associated with leverage are out­ U.S.C. 1843(c)). weighed by public benefits deriving from the faci­ Applicant, presently a one-bank holding com­ litation of the otherwise difficult task of transfer­ pany, controls Union Bank and Trust, Denver, ring ownership of small rural banks. However, the Colorado, the fifteenth largest of 70 banks in the Board also has previously stated its view that the Denver banking market,2 with deposits of $38.8 financial structure of a multi-bank holding com­ million,3 representing approximately 1 per cent of pany should meet higher standards of financial the total deposits in commercial banks in the soundness than are applied to one-bank holding market. The acquisition of Bank would result in companies.4 In applying this policy, the Board Applicant’s becoming the ninth largest of 11 finds that Applicant, in this proposed transition multi-bank holding companies in the State and the from a one-bank holding company to a multi-bank tenth largest banking organization in the Denver holding company, should not be permitted to incur banking market, with Applicant controlling less the proposed amount of debt to acquire a second than 1 per cent of the total commercial bank bank. Applicant proposes to borrow an additional deposits in the State and about 1.5 per cent of $2.2 million to finance the purchase of Bank, with the total deposits in commercial banks in the the result that Applicant would have an outstand­ market. ing long-term debt of $5.2 million. Applicant’s Bank (deposits of $20.3 million) is the twenty- earnings would be heavily dependent upon the fourth largest of 70 commercial banks in the earnings of its subsidiary banks, and Applicant is Denver banking market and controls approxi­ proposing to service this long-term debt over an mately 0.5 per cent of the total deposits in com­ 11-year period primarily through dividends from mercial banks in the market. Since both Bank and its subsidiary banks. Applicant’s proposal for re­ Applicant’s present subsidiary bank operate in the tirement of the debt is contingent upon the banks’ Denver banking market, consummation of this maintaining an average dividend payout ratio of proposal would eliminate some existing competi­ 52 per cent throughout the 11-year period. In the tion between these institutions. However, there is Board’s view, the projected earnings of Applicant evidence in the record showing that the competi­ would not provide Applicant with the necessary financial flexibility to meet its annual debt servic­ ing requirements as well as any unexpected prob­ 1 Applicant was formerly engaged in oil and gas exploration activities, but has ceased all such activities and disposed of lem that might arise at the subsidiary banks. This all assets related thereto. factor strongly suggests that the financial require- 2 The Denver banking market is the relevant market for this application and is approximated by Denver, Adams, Arapahoe, and Jefferson Counties, and a portion of Boulder County which 4See the Board’s Order of January 15, 1974, denying the includes the City of Broomfield. application of BHCo, Inc., Hardin, Montana, to become a bank 3 All banking data are as of December 31, 1973. holding company (60 Bulletin 123). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin □ March 1975 ments of Applicant’s proposal could place an at a desirable level and that such condition could undue strain on the financial conditions of the impair the ability of the banks to meet the needs subsidiary banks and thereby impair their ability of the community which they serve. Accordingly, to remain viable banking organizations in meeting the Board concludes that consummation of this the banking needs of the community which they proposal would not be in the public interest and serve. Such considerations relating to the financial that the application to acquire Bank should be condition and prospects of Applicant, in addition denied. to other facts of record, lend substantial weight Incident to this proposal, Applicant has also toward denial of the application and outweigh any applied pursuant to § 4(c)(8) of the Act to engage procompetitive effects that might result from ap­ de novo in the activities of an insurance agent or proval of the application. broker with respect to insurance for the holding Applicant states that affiliation with Applicant company and its subsidiaries, and also with respect would enable Bank to draw upon the resources to credit life and credit accident and health insur­ and expertise of Applicant and its present subsidi­ ance directly related to extensions of credit by ary bank, and to increase the services and the Alameda National Bank. Approval of this proposal volume of loans which Bank offers to its custom­ would permit Applicant to offer Bank’s customers ers. However, since the Board has found that the convenience of obtaining banking and insur­ consummation of this proposal could place an ance ‘ services in conjunction with each other. undue strain upon Applicant’s financial resources, However, in view of the Board’s finding that the the Board believes that it is doubtful that any application to acquire Bank must be denied, the appreciable benefits to the public would result from Board’s consideration of the application to conduct this proposal. Accordingly, considerations relating insurance agency activities on the premises of to the convenience and needs of the community Bank hereby becomes moot. to be served lend no weight toward approval of By order of the Board of Governors, effective the application. February 24, 1975. On the basis of all the facts of record, and in Voting for this action: Vice Chairman Mitchell and Gover­ light of the factors set forth in § 3(c) of the Act, nors Sheehan, Bucher, Holland, and Coldwell. Absent and not it is the Board’s judgment that the proposed ac­ voting: Chairman Burns and Governor Wallich. quisition would result in Applicant’s financial re­ sources being inadequate to service its debt while (Signed) Theodore E. Allison, maintaining its subsidiary banks’ capital accounts [seal] Secretary of the Board. O R D E R S N O T P R IN T E D IN T H IS ISSU E ORDERS APPRO VED BY THE BO ARD OF GO VERNO RS During February 1975, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(3) OF BANK H O LDING COM PANY ACT— APPLICATIONS FOR ACQ UISITIO N OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Alabama Bancorporation, The Bank of Arab, 2/21/75 40 F.R. 9004 Birmingham, Alabama Arab, Alabama 3/4/75 Ameribanc, Inc., Bank of Higginsville, 2/18/75 40 F.R. 8256 St. Joseph, Missouri Higginsville, Missouri 2/26/75 Associated Bank Corpora­ Community State Bank 2/26/75 40 F.R. 11034 tion, Iowa City, Iowa of Clear Lake, Clear 3/10/75 Lake, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 181 ORDERS UNDER SECTION 3(a)(3) OF BANK H OLDING CO M PANY ACT— APPLICATIO NS FOR ACQ UISITIO N OF BANK— Cont. Board action Federal (effective Register Applicant Bank(s) date) citation First United Bancor­ University Bank, 2/5/75 40 F.R. 6722 poration, Inc., Fort Fort Worth, Texas 2/13/75 Worth, Texas National City Corporation, Third National Bank 2/28/75 40 F.R. 11035 Cleveland, Ohio of Sandusky, Sandusky, 3/10/75 Ohio Topeka Bank Shares, Inc., Topeka State Bank 2/26/75 40 F.R. 11036 Topeka, Kansas and Trust Company, 3/10/75 Topeka, Kansas United Michigan Corpora­ Gaylord State Bank, 2/24/75 40 F.R. 9007 tion, Flint, Michigan Gaylord, Michigan 3/4/75 Wyoming Bancorporation, Bank of Wyoming, 2/18/75 40 F.R. 8257 Cheyenne, Wyoming Hanna, Wyoming 2/26/75 ORDERS UNDER SECTIO N 4(c)(8) OF BANK HOLDING CO M PANY ACT- APPLICATIO NS TO ENG AG E IN NONBANK ING ACTIVITIES Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation D. H. Baldwin Company, Computer Congenerics 2/12/75 40 F.R. 8122 Cincinnati, Ohio Corporation of Colorado 2/25/75 Denver, Colorado Fidelity American Columbia Insruance 2/26/75 40 F.R. 11647 Bankshares, Inc., Agency, Inc., 3/12/75 Lynchburg, Virginia Lynchburg, Virginia First City Bancorporation First City Life 2/21/75 40 F.R. 9005 of Texas, Inc., Insurance Company, 3/4/75 Houston, Texas Houston, Texas ORDERS APPRO VED BY THE SECRETARY OF THE BO ARD During February 1975, applications were approved by the Secretary of the Board under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin □ March 1975 ORDERS UNDER SECTION 3(a)(1) OF BANK H O LDING CO M PANY ACT- APPLICATIONS FOR FORM ATIO N OF BANK H O LDING COM PANY Board action Federal (effective Register Applicant Bank(s) date) citation Greene Bancorporation, First State Bank, 2/27/75 40 F.R. 11035 Greene, Iowa Greene, Iowa 3/10/75 Woodbine Bancorp, Inc., The First National Bank 2/10/75 40 F.R. 7008 Woodbine, Iowa of Woodbine, Woodbine, Iowa 2/18/75 ORDERS UNDER SECTION 3(a)(3) OF BANK H O LDING CO M PANY ACT— APPLICATIO NS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Mercantile Bancorporation Inc., State Bank of Willow Springs, 2/3/75 40 F.R. 6389 St. Louis, Missouri Willow Springs, Missouri 2/11/75 Victoria Bankshares, Inc., The Jackson County State 2/3/75 40 F.R. 6390 Victoria, Texas Bank, Edna, Texas 2/11/75 ORDERS APPROVED BY FEDERAL RESERVE BANKS During February, 1975, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDER UNDER SECTION 3(a)(3) OF BANK H O LDING CO M PANY ACT— APPLICATION FOR ACQ UISITIO N OF BANK Federal Reserve Effective Register Applicant Bank(s) Bank date citation Sun Banks of Florida, Peoples Bank of Broward Atlanta 2/13/75 40 F.R. 8124 Inc., Orlando, Florida County, Tamarac, Florida 2/25/75 ORDER UNDER SECTIONS 3 AND 4 OF BANK HOLDING COM PANY ACT— APPLICATION TO FORM BANK H O LDING COM PANY AND ENG AG E IN NO NBANK ING ACTITIVIES Federal Nonbanking company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Edwardsville The Edwardsville Sale of credit Kansas City 2/11/75 40 F.R. 8123 Bank-Shares, State Bank, Inc., life and credit 2/25/75 Inc., Edwards­ Edwardsville, accident and ville, Kansas Kansas health insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

183 Announcements C H A N G E IN C H A N G E IN B O A R D STA FF D ISC O U N T RATE The Board of Governors announced the following The Board of Governors of the Federal Reserve change in its official staff, effective March 17, System approved actions by the directors of the 1975: Federal Reserve Banks of Boston, New York, Robert S'. Plotkin from Associate Program Philadelphia, Cleveland, Richmond, Atlanta, Chi­ Director for Bank Holding Company Analysis, cago, Minneapolis, Kansas City, and San Fran­ Office of Managing Director for Operations, to cisco, reducing the discount rate of those Banks Assistant Director, Office of Saver and Consumer from 63A to 6XA per cent, effective March 10, 1975. Affairs. Subsequently, the Board approved similar actions by the directors of the Federal Reserve Banks of IN TR O D U C T IO N TO St. Louis and Dallas, effective March 14, at which FLO W O F FU N D S A C C O U N TS time the rate was 6lA per cent at all Reserve Banks. The action was taken in view of the weakness A revised description of flow of funds accounts in economic activity and the recent evidence of is now available. This publication consists of the moderation in the rate of inflation, and also to 53-page introductory text on purposes, nature, and bring the discount rate into better alignment with structure of flow of funds accounts that was pub­ other short-term interest rates. lished with annual tables in 1968 and again in The discount rate is the interest rate charged 1970. This version of the text has been updated member commercial banks for borrowing from in terms of charts and definitions with the Sep­ their district Federal Reserve Banks. tember 1974 revision of the accounts. It does not include the tables themselves, which are available PR O PO SE D L EG ISLA T IO N as annual data on request without charge, nor does TO R E G U L A TE it include the detailed description of derivation methods. FO R E IG N B A N K IN G The price of the revised publication is $.50 a The Board of Governors on March 4, 1975, re­ copy; in quantities of 10 or more sent to one submitted to the Congress its proposed legislation address, $.40 each. Copies may be obtained from to regulate foreign banking in the United States. Publications Services, Division of Administrative The legislation, which was first introduced in the Services, Board of Governors of the Federal Re­ Congress late last year, is designed to standardize serve System, Washington, D.C. 20551. the status of foreign banks in the United States by placing them under the same basic rules and A D M ISSIO N O F STA TE B A N K S TO procedures that must be observed by domestic M E M B ER SH IP IN TH E banks. FED E R A L R E SER V E SY STEM R EV ISED The following banks were admitted to membership in the Federal Reserve System during the period O TC STO C K LIST February 16, 1975, through March 15, 1975: The Board of Governors announced several Florida changes, effective February 24, 1975, in its “List Pensacola .....................................First Navy Bank of OTC Margin Stocks” that was issued in revised New York form on July 29, 1974. The revised list is available Binghamton .. Chemical Bank of Binghamton from Publications Services, Division of Adminis­ Tennessee trative Services, Board of Governors of the Federal Memphis.........................Commerce Union Bank Reserve System, Washington, D.C. 20551. of Memphis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

185 Industrial Production Released for publication March 14 as the reduction in output of products, suggesting a substantial liquidation of materials inventories. Industrial production declined an estimated 3.0 per cent further in February, bringing the total index INDUSTRIAL PRODUCTION Seasonally adjusted, ratio scale, 1967=100 to 110.3 per cent of the 1967 average— 12.2 per cent below the September 1974 level. Cutbacks in output continued to be widespread among con­ sumer goods, business equipment, construction products, and industrial materials. At an annual rate of 4.6 million units, auto assemblies were down 4 per cent from January and 30 per cent below a year earlier. Unit sales exceeded production in both February and Jan­ uary, and stocks of new autos were reduced con­ siderably. Auto assemblies are currently scheduled to increase in March. Production of other durable and nondurable consumer goods also continued to decline in February. Business equipment output was reduced 2Vi per cent further and was almost 10 per cent below the high reached last autumn. Production of industrial materials declined fur­ ther, as output was again curtailed in consumer durable parts, equipment parts, other durable ma­ terials, and textiles, paper, and chemicals. Pro­ duction cuts in these industries have totaled 18 F.R. indexes, seasonally adjusted. Latest figures: February. per cent since last autumn. This is twice as much *Auto sales and stocks include imports. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate Industrial production 1974 1975 1974 Month Year ago ago Dec. Jan.* Feb.e Q2 Q3 Q4 Total .......................................................... 117.7 113.7 110.3 -3.0 -11.5 1.9 - .3 -12.8 Products, total .................................................. 118.5 115.7 113.0 -2.3 - 7.7 2.6 .6 - 9.1 Final products ............................................... 118.1 115.0 112.5 -2.2 - 6.7 3.0 2.0 - 6.9 Consumer goods ..................................... 123.2 120.1 117.9 -1.8 - 8.1 2.5 0 -11.1 Durable goods ................................... 110.5 105.4 101.0 -4.2 -20.1 14.7 -4.5 -36.7 Nondurable goods ........................... 128.1 125.6 124.4 -1.0 - 3.6 - 2.2 2.2 - 1.5 Business equipment ............................. 127.2 122.5 119.4 -2.5 - 6.2 7.2 4.0 - 2.4 Intermediate products ............................... 120.1 118.4 115.1 -2.8 -10.8 1.2 -3.7 -16.3 Construction products ......................... 118.5 117.2 112.0 -4.4 -14.7 - 2.7 -7.7 -21.3 Materials .............................................................. 116.3 110.4 106.2 -3.8 -17.2 - .3 - .9 -19.9 p Preliminary. eEstimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 Member bank reserves, Federal Reserve Bank credit, and related items A 7 Federal funds—Major reserve city banks A 8 Reserve Bank interest rates A 9 Reserve requirements A 10 Maximum interest rates; margin requirements A 11 Open market account A 12 Federal Reserve Banks A 13 Bank debits A 14 Money stock A 15 Bank reserves; bank credit A 16 Commercial banks, by classes A 20 Weekly reporting banks A 25 Business loans of banks A 26 Demand deposit ownership A 27 Loan sales by banks A 27 Open market paper A 28 Interest rates A 31 Security markets A 32 Stock market credit A 32 Savings institutions A 34 Federal finance A 36 U.S. Government securities A 39 Federally sponsored credit agencies A 40 Security issues A 43 Business finance A 44 Real estate credit A 47 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 Federal Reserve Bulletin □ March 1975 U.S. STATISTICS—Continued A 50 Industrial production A 52 Business activity A 52 Construction A 54 Labor force, employment, and unemployment A 55 Consumer prices A 55 Wholesale prices A 56 National product and income A 58 Flow of funds INTERNATIONAL STATISTICS: A 60 U.S. balance of payments A 61 Foreign trade A 61 U.S. reserve assets A 62 U.S. gold transactions A 63 International capital transactions of the United States A 76 Open market rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governments TABLES PUBLISHED PERIODICALLY: Banking and monetary statistics, 1974: A 79 Reserves and borrowings of member banks A 80 Member bank reserves, Federal Reserve Bank credit, and related items A 82 Loans sold outright by commercial banks A 83 Sales, revenue, profits, and dividends of large manufac­ turing corporations A 90 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rP Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as a negative figure, or (3) an outflow. direct obligations of the Treasury. “State and local A heavy vertical rule is used in the following in­ govt.” also includes municipalities, special districts, stances: (1) to the right (to the left) of a total when and other political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals be­ that total (totals separated by ordinary rules include cause of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Sales, revenue, profits, and divi­ Banks and branches, number, dends of large manufacturing by class and State .................... Apr. 1974 A-88—A-89 corporations ................................ Mar. 1975 A-83 Semiannually Flow of funds: Assets and liabilities: Banking offices: 1962-73 .................................. Oct. 1974 A-59.14—A-59.28 Analysis of changes in number Feb. 1975 A-82 On, and not on, Federal Reserve Flows: Par List, number ................... Feb. 1975 A-83 1965-73 .................................. Oct. 1974 A-58—A-59.13 Annually Income and expenses: Bank holding companies: Federal Reserve Banks ............ Feb. 1975 A-80—A-81 Banking offices and deposits of Insured commercial banks ....... June 1974 A-84—A-85 group banks, Dec. 31, 1973 June 1974 A-80—A-83 Member banks: July 1974 530 Calendar year .......................... June 1974 A-84—A-93 Banking and monetary statistics: Income ratios .......................... June 1974 A-94—A-99 Mar. 1974 A-96—A-109 Operating ratios .................... Sept. 1974 A-80—A-85 July 1974 A-80—A-82 1974 Feb. 1975 A-84—A-85 Mar. 1975 A-79—A-82 Stock market credit ........................ Feb. 1975 A-86—A-87 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases ........................................................................................ Dec. 1974 A-86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ MARCH 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Bought r u H e n p e d l u e d r r ­ Loans Float 3 as O F se t . h R ts e . r 4 Total ^ s G to o c ld k c D a e R c r r t a c i i g f w o i h u c i t n a n s t g t e r s e t c o a n u u n c r t y d ­ ­ ­ Total out­ chase ing right 2 agree­ ment Averages of daily figures 1939—Dec.............................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.............................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec............................. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec............................. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec.............................. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1969—Dec.............................. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec............................... 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec............................... 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec............................... 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec............................... 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—Feb............................... 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar.............................. 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 Apr............................... 81,567 80,873 694 1,714 2,295 1,160 86,907 11,567 400 8,807 May............................. 83,434 82,037 1,397 2,580 2,025 1,093 89,405 11,567 400 8,838 June..................... 82,812 81,859 953 3,000 2,114 1,106 89,254 11,567 400 8,877 July............................... 84,313 83,496 817 3,308 2,267 1,343 91,554 11,567 400 8,905 Aue.............................. 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 84,384 84,049 335 3,287 2,239 1,349 91,617 11,567 400 8,992 Oct................................ 83,735 83,303 432 1,793 2,083 2,984 90,971 11,567 400 9,041 Nov.............................. 84,052 83,395 657 1,285 2,409 3,171 91,302 11,567 400 9,113 Dec............................... 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—Jan................................ 86,039 85,369 670 390 2,456 3,391 93,002 11,647 400 9,235 Feb .p........................... 84,744 83,843 901 147 1,918 3,419 91,007 11,626 400 9,284 Week ending— 1974—Dec. 4....................... 85,559 83,967 1,592 1,070 2,768 3,113 93,186 11,567 400 9,168 11....................... 85,445 84,925 520 648 2,545 3,053 92,238 11,603 400 9,163 18....................... 85,842 85,157 685 818 2,569 3,047 92,859 11,652 400 9,178 25....................... 88,242 85,761 2,481 662 2,285 3,141 95,124 11,652 400 9,194 1975—Jan. 1....................... 87,903 85,746 2,157 561 3,261 3,205 95,962 11,652 400 9,221 8....................... 86,317 85,587 730 311 3,439 3,291 94,058 11,652 400 9,216 15....................... 85,520 85,381 139 609 2,601 3,309 92,672 11,652 400 9,235 22....................... 86,105 85,191 914 594 2,101 3,443 92,757 11,652 400 9,239 29....................... 86,341 85,448 893 142 1,978 3,490 92,742 11,635 400 9,246 Feb. 5....................... 85,613 84,999 614 98 2,128 3,839 92,509 11,634 400 9,267 12....................... 83,801 83,111 690 90 1,987 3,680 90,301 11,628 400 9,271 19*..................... 84,255 83,357 898 228 2,031 3,396 90,670 11,624 400 9,276 26*..................... 85,376 84,148 1,228 180 2,304 2,933 91,576 11,621 400 9,303 End of month 1974—Dec............................... 85,714 84,760 954 299 2,001 3,195 92,208 11,652 400 9,253 1975—Jan................................ 86,134 85,076 1,058 103 1,466 3,518 92,187 11,635 400 9,305 Feb.*........................... 86,416 84,152 2,264 77 1,256 3,005 91,747 11,621 400 9,334 Wednesday 1974—Dec. 4....................... 82,271 81,447 824 315 2,927 2,947 89,068 11,567 400 9,141 11....................... 86,187 84,878 1,309 1,159 3,077 3,047 94,204 11,652 400 9,170 18....................... 87,967 85,679 2,288 1,384 3,117 3,248 96,433 11,652 400 9,184 25....................... 89,258 85,985 3,273 426 2,463 3,154 96,164 11,652 400 9,208 1975—Jan. 1...................... 85,714 84,760 954 299 2,001 3,195 92,208 11,652 400 9,253 8....................... 82,726 82,726 126 3,168 3,460 90,074 11,652 400 9,235 15....................... 85,176 85,048 128 2,893 2,865 3,493 95,097 11,652 400 9,237 22....................... 89,306 85,325 3,981 2,444 2,537 3,928 99,198 11,652 400 9,242 29....................... 86,305 85,141 1,164 159 2,638 3,598 93,579 11,635 400 9,264 Feb. 5....................... 83,909 83,909 89 5,302 4,665 94,632 11,629 400 9,270 12....................... 86,154 83,741 2,413 117 2,387 3,580 93,180 11,625 400 9,275 19*>..................... 83,976 83,976 1,125 2,302 2,984 91,023 11,621 400 9,281 26*..................... 86,886 84,121 2,765 834 2,381 2,740 93,720 11,621 400 9,334 1 Includes Federal agency issues held under repurchase agreements on Wed. and end-of-month dates, see table on F.R. Banks on p. A-12. beginning Dec. 1, 1966, and Federal agency issues bought outright be­ See also note 3. ginning Sept. 29, 1971. 6 Includes certain deposits of domestic nonmember banks and foreign- 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. owned banking institutions held with member banks and redeposited in Govt, securities pledged with F.R. Banks, and excludes (if any), securities full with F.R. Banks in connection with voluntary participation by nonsold and scheduled to be bought back under matched sale-purchase member institutions in the Federal Reserve System’s program of credit transactions. restraint. 3 Beginning with 1960 reflects a minor change in concept; see Feb. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign 1961 Bulletin, p. 164. agency and branch deposits at F.R. Banks that are associated with margi­ 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. nal reserves are no longer reported. However, deposits voluntarily held liabilities and capital” are shown separately; formerly, they were netted by agencies and branches of foreign banks operating in the United States together and reported as “Other F.R. accounts.” as reserves and Euro-dollar liabilities are reported. ^Includes industrial loans and acceptances until Aug. 21, 1959, when Digitized for FRAinSduEsRtri al loan program was discontinued. For holdings of acceptances Notes continued on opposite page. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank r C en u c r y ­ T u re r a y s­ with r e F s . e R rv . e B s, a nks Other O F t . h R e . r reserves Period or date in cash F.R. lia­ c t c u i i o l r a n ­ ­ h i o ng ld s ­ T u re r a y s­ F ei o g r n ­ Other 3,6 co a u c n ­ ts4 c b a i a p l n i i t t d i a e l s 4 B W F a . n R it k h . s r C e a n n u c d r y ­ coin7 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 . 1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 . 1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 . 1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 57,013 427 849 145 735 2.265 23,925 5,340 29,265 .1970—Dec. 61,060 453 1.926 290 728 2,287 25,653 5,676 31,329 .1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 .1972—Dec. 71,646 323 1,892 406 717 2,942 28,352 6,635 35,068 .1973—Dec. 70,411 342 2,972 293 682 2,932 28,574 6,601 35,242 . 1974—Feb. 71,081 334 1,803 311 699 2,998 28,450 6,450 34,966 ............Mar. 72,176 308 1,712 328 702 2,985 29,469 6,402 35,929 ............Apr. 72,876 286 3,000 320 699 3,168 29,861 6,600 36,519 ............May 73,749 293 2,015 491 691 3,187 29,672 6,668 36,390 ............June 74,556 275 2,795 296 773 3,216 30,514 6,824 37,338 ............July 74,709 283 2,633 326 831 3,240 30,264 6,765 37,029 ............Aug. 75,098 303 2,451 456 766 3,345 30,156 6,920 37,076 ............Sept. 75,654 315 1,601 294 869 3,260 29,985 6,811 36,796 ............Oct. 77,029 302 864 370 770 3,149 29,898 6,939 36,837 ............Nov. 78,951 220 1,741 357 874 3.266 29,767 7,174 36,941 ............Dec. 77,780 221 2,087 336 884 3,264 29,713 7,779 37,492 . 1975—Jan. 76,979 236 2,374 317 711 3,358 28,342 7,067 35,409 ............Feb.* Week ending— 77,952 316 1,464 453 1,024 3.250 29,861 7,100 36,961 . 1974—Dec. 4 78,496 266 1,303 320 893 3; 090 29,035 7,258 36,293 ......................11 78,926 182 926 407 821 3,213 29,615 7,147 36,762 .....................18 79,368 180 2,471 345 752 3,399 29,855 6,990 36,845 .....................25 79,655 189 2,606 333 896 3,339 30,218 7,370 37,588 . 1975—Jan. 1 78,922 192 1,850 324 986 3,071 29,981 7,331 37,312 78,191 226 1,352 446 901 3,194 29,652 8,555 38,207 .15 77,431 244 1,618 279 828 3,366 30,482 7,783 38,265 .22 76,666 252 3,005 272 798 3,395 29,635 7,605 37,240 .29 76,456 246 2,634 342 848 3,741 29,543 7,431 36,974 . Feb. 5 77,052 239 1,492 270 634 3,342 28,573 7,456 36,029 ..........12 77,298 234 1,960 364 612 3,162 28,341 6,820 35,161 ..........19* 76,993 212 3,489 300 703 3,239 27,963 6,671 34,634 ..........26* End of month 79,743 185 3,113 418 1,275 2,935 25,843 7,370 33,213 ...............1974—Dec. 76,343 250 3,540 391 748 3,415 28,839 7,431 36,270 . 1975—Jan. 76,840 212 2,884 409 901 3,326 28,530 6,946 35,476 ............Feb. J Wednesday 78,349 323 1,568 411 841 3,211 25,473 7,100 32,573 . 1974—Dec. 4 79,009 207 690 358 924 3,149 31,089 7,258 38,347 .....................11 79,293 192 2,209 266 816 3,332 31,562 7,147 38,709 .....................18 79,842 183 2,671 450 775 3,463 30,040 6,990 37,030 .....................25 79,743 185 3,113 418 1,275 2,935 25,843 7,370 33,213 . 1975—Jan. 1 78,710 235 741 381 766 3,058 27,470 7,331 34,801 77,946 240 1,366 950 731 3.232 31,922 8,555 40,477 .15 77,136 261 1,857 230 906 3,618 36,484 7,783 44,267 .22 76,638 261 3,442 334 708 3,446 30,049 7,605 37,654 .29 76,860 249 779 277 732 4,859 32,175 7,431 39,606 .Feb. 5 77,493 236 1,308 250 683 3,174 31,336 7,456 38,792 12 77,408 230 3,040 319 700 3.232 27,396 6,820 34,216 19* 77,078 212 3,187 271 851 3,229 30,247 6,671 36,918 26* 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies thereafter. Beginning Jan. 1963, figures are estimated except for weekly included are (beginning with first statement week of quarter): Ql, $279 averages. Beginning Sept. 12, 1968, amount is based on close-of-business million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning figures for reserve period 2 weeks previous to report date. 1974, Ql, $67 million, Q2, $58 million. Transition period ended after 8 Beginning with week ending Nov. 15, 1972, includes $450 million of second quarter, 1974. reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS a MARCH 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess TOWquired sonal ings ings ngs 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 4 14,536 1,491 334 48 192 14 418 46 16,364 1,027 142 125 58 8 5 232 29 18,527 756 87 29 19 4 8 100 40 22,267 452 454 41 111 15 23 67 92 24,915 345 238 18 40 8 13 50 80 26,766 455 765 100 230 15 85 90 180 27,774 257 1,086 56 259 18 27 6 321 28,993 272 321 34 25 7 4 42 28 31,164 165 107 25 35 1 8 -35 42 31,134 219 1,049 -20 301 13 55 -42 264 34,806 262 1,298 41 -23 74 43 28 28 435 35,053 189 1,186 17 51 87 -19 18 -51 446 34,790 176 1,352 32 21 113 -61 65 43 485 35,771 158 1,714 50 19 114 69 41 -58 572 36,325 194 2,580 102 -20 772 29 20 -4 849 36,259 131 3,000 130 -26 1,303 -8 51 26 847 37,161 177 3,308 149 45 1,457 19 70 -12 933 36,851 178 3,351 165 -58 1,464 6 23 78 ,004 36,885 191 3,287 139 133 1,662 20 17 -77 816 36,705 91 1,793 117 -49 502 -18 36 36 686 36,579 258 1,285 67 -8 257 38 90 448 36,602 339 703 32 132 80 5 li 39 282 37,556 -64 390 13 -119 156 -16 16 -91 131 35,348 61 147 11 -31 35 21 10 -77 73 35,351 124 998 18 -123 14 34 504 35,054 294 1,153 15 144 92 -23 56 -34 420 35,274 114 1,376 20 -37 257 -63 -42 408 34,645 206 1,251 16 70 -17 13 -24 458 36,692 228 3,089 174 -7 1,420 9 24 54 ,001 36,823 113 3,041 160 20 1,431 8 24 -39 870 36,947 209 3,437 167 -32 1,447 -2 23 130 ,006 36,920 146 3,533 161 105 1,457 31 21 -98 ,104 36,918 321 3,906 152 -66 1,729 40 19 171 ,033 36,628 109 3,084 132 127 1,567 -35 20 -110 731 37,004 82 2,921 134 -150 1,517 15 16 90 648 36,872 74 3,531 141 80 1,782 12 10 -93 868 37,077 456 3,218 143 67 1,756 9 17 222 913 36,656 -55 2,245 132 -26 1,245 -20 10 -127 654 37,088 327 1,744 121 41 219 27 135 99 606 36,615 -159 1,322 108 -101 148 -12 2 -122 663 36,576 243 1,638 105 109 96 -9 11 42 801 36,672 323 1,125 78 54 68 32 105 632 36,335 144 1,097 70 -15 188 -29 30 40 399 36,785 27 1,367 64 -16 465 8 29 -87 378 36,459 310 1,479 63 69 243 27 87 422 36,678 283 1,070 51 141 226 4 -16 394 36,452 -159 648 35 -173 73 -36 26 -50 268 36,545 217 818 31 59 60 23 54 -39 287 36,416 429 662 29 137 72 52 89 257 37,011 577 561 24 -8 83 61 223 260 37,175 137 311 18 55 36 -27 -26 168 38,249 -42 609 12 -130 317 1 69 -89 115 38,079 186 594 12 29 328 1 45 136 37,066 174 142 10 71 -13 -24 109 36,579 395 98 11 133 33 84 86 35,970 59 90 10 -37 6 -20 -5 69 34,958 203 228 12 -104 140 -29 241 70 34,457 177 180 11 -88 44 39 -55 70 tov. 15, 1972, includes $450 million of for reserve-requirement purposes has been (net Banks are allowed to waive penalties demand deposits of more than $400 million), Uetin n with bank adaptation to Regulation J for July 1972, p. 626. Categories shown here :her” Beginning 1973, allowable deficiencies parallel the previous “Reserve city” and “Coui ively statement week of quarter): Ql, $279 (hence the series are continuous over time). 12 million; Q4, $84 million. Beginning lillion. Transition period ended after Note.—Monthly and weekly data are avei ithin >r which figures are preliminary, figures the month or week, respectively. total because adjusted data by class are Borrowings at F.R. Banks: Based on closinj Effective Apr. 19, 1963, the Board’s Regula [endnation of banks as reserve city banks ing by F.R. Banks, was revised to assist sim the seasonal borrowing needs of their commu Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— Excess r a o B t B w a F o n in . r k R ­ g s . s F t f i b e r u n N a a d n t n n e e e d r s r t k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e u o v c r i g f v r e . e e n d s t c P ha u s r e ­ s Sales t a w c t T r o t a i o - o n t w n a s s l a ­ y 2 b c o b u P h a f y a u n n s i r k n e e ­ s g t s s b o S e a f l a n l l n i e k n e s s g t d L ea o t l o a e n rs s 3 de f r B i a r o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 1975—Jan. 1........ 271 185 13,872 -13,786 78.6 20,142 6,270 5,124 15,018 1,146 3,042 538 2,505 136 76 15,609 -15,550 87.9 21,570 5,961 5,239 16,330 722 3,278 565 2,713 15. -91 330 15,890 -16,310 88.6 21,062 5,172 4,854 16,208 318 3,121 604 2,516 22. -11 244 15,213 -15,468 84.7 20,563 5,350 4,812 15,752 538 2,584 860 1,724 29. 4 13,212 -13,216 74.9 19,233 6,021 5,319 13,915 703 2,548 919 1,629 Feb. 5. 177 14,481 -14,305 82.2 20,952 6,470 5,631 15,321 839 2,800 809 1,991 12. 52 5 16,260 -16,213 94.9 22,136 5,876 5,155 16,982 722 3,635 ,000 2,635 19. -41 142 16,440 -16,623 100.2 23,568 7,128 5,949 17,61" 1 ,179 2,727 932 1,795 26. -10 74 15,742 15,826 98.2 21,864 6,122 5,204 16,661 91 2,977 878 2,100 8 in New York City 1975—Jan. 1.......... 67 21 4,816 -4,771 64.7 5,994 1,178 1,178 4,816 1,193 270 923 72 5,289 -5,218 69.7 6,483 1,193 1,194 5,289 1,459 291 1,167 15. -70 206 5,358 -5,633 72. 6,401 1,043 1,643 5,358 1,388 350 1.037 22. -47 203 5,603 -5,853 75.3 6,376 773 773 5,603 1,197 365 832 29. -28 4,685 -4,713 63.5 6,004 1,319 1,320 4,684 1,269 427 842 Feb. 5. 56 5,708 -5,652 77.5 6,985 1,277 1,277 5,708 1,433 473 960 12. 34 7,172 -7,138 100.3 7,883 711 710 7,172 1,551 610 942 19. 1 6,305 -6,439 92.1 7,697 1,392 1,393 6,305 1,331 610 721 26. -41 5,825 5,886 6,894 1,069 1,069 5,825 1,579 541 1.038 38 outside New York City 1975—Jan. 1. 204 164 9,056 -9,016 88.6 14,148 5,092 5,092 10,202 1,146 1,850 268 1,582 8. 64 76 10,320 -10,332 101.3 15,087 4,768 4,046 11,041 722 1,820 274 1,546 15. -21 124 10,532 -10,677 100.1 14,662 4,130 3,812 10,850 318 1,733 254 1,479 22. 36 41 9,610 -9,616 91.7 14,187 4,577 4,039 10,148 538 1,386 495 891 29. 32 8,528 -8,504 83.1 13,229 4,702 3,999 9,230 703 1,279 492 787 Feb. 121 8,773 -8,653 85.6 13,967 5,193 4,354 9,613 839 1,368 336 1,031 19 9,088 -9,074 91.1 13,254 5,166 4,444 9,809 722 2,084 391 1,694 -42 10,135 -10,184 106.1 15,870 5,736 4,557 11,314 1,179 1 ,396 322 1,074 30 9,917 -9,961 104.7 14,971 5,053 4,135 10,836 918 1,398 336 1,062 5 in City of Chicago 1975—Jan. 1........... 3,408 -3,309 173.0 4,202 795 795 3,408 287 287 3,993 -4,013 206.4 4,796 802 803 3,993 329 329 15. 68 4,031 -4,099 198.7 4,722 691 691 4,031 294 294 22. -2 3,405 -3,407 171. 4,284 879 879 3,406 296 296 29. -14 3,384 -3,397 177.5 4,214 830 831 3,384 352 352 5 . 34 3,727 -3,693 193.3 4,573 846 846 3,727 354 354 12. 3 3,500 -3,497 183.4 4,264 765 765 3,500 304 304 19. -26 4,742 -4,767 261.9 5,639 897 897 4,742 300 300 26. 16 39 3,978 -4,002 223.6 4,781 805 803 3,978 254 254 33 others 1975—Jan. 1. 105 164 5,648 -5,707 69.1 9,945 4,297 3,151 6,794 1,146 1,563 268 1,295 8. 83 76 6,326 -6,319 76.6 10,291 3,965 3,243 7,048 722 1,491 274 1,217 15. -21 56 6,501 -6,578 76.4 9,940 3,439 3,121 6,819 318 1,439 254 1,185 22. 34 41 6,205 -6,209 73.0 9,903 3,699 3,160 6,743 538 1,090 495 595 29. 46 5,144 -5,106 61.4 9,015 3,871 3,169 5,847 703 927 492 435 Feb. 5. 87 5,046 -4,960 60.5 9,394 4,348 3,508 5,885 839 1,013 336 677 12............ 16 5,589 -5,577 69.2 9,990 4,401 3,680 6,310 722 1,780 391 1,390 19............ -16 5,393 -5,416 69.7 10,232 4,838 3,660 6,572 1,179 1,096 322 774 26............ 15 5,939 -5,959 77.2 10,190 4,251 3,352 6,857 918 1,144 336 808 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 F.R. BANK INTEREST RATES □ MARCH 1975 CURRENT RATES (Per cent per annum) Loans to member banks— Under Secs. 13 and 13a1 Under S<jc. 10(b)2 Loans to all others under last par. Sec. 13 4 Federal Reserve Regular rate Special rate 3 Bank Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 2/28/75 date rate 2/28/75 date rate 2/28/75 date3 rate 2/28/75 date rate Boston................... 634 2/5/75 714 714 2/5/75 734 81/2 2/5/75 9 9i/i 2/5/75 10 New York............. 634 2/5/75 714 714 2/5/75 734 81/2 2/5/75 9 91/2 2/5/75 10 Philadelphia.......... 634 2/5/75 714 714 2/5/75 734 8 Vi 2/5/75 9 91/2 2/5/75 10 Cleveland............... 634 ■ 2/5/75 714 714 2/5/75 734 8 Vi 2/5/75 9 9i/i 2/5/75 10 Richmond.............. 634 2/5/75 714 71/4 2/5/75 734 81/2 2/5/75 9 91/2 2/5/75 10 Atlanta................... 634 2/5/75 71/4 71/4 2/5/75 73/4 81/2 2/5/75 9 9Vi 2/5/75 10 Chicago................. 634 2/6/75 714 714 2/6/75 734 81/2 2/6/75 9 9Vi 2/6/75 10 St. Louis................ 634 2/7/75 71/4 71/4 2/7/75 734 81/2 2/7/75 9 91/2 2/7/75 10 Minneapolis.......... 634 2/5/75 714 71/4 2/5/75 734 81/2 2/5/75 9 91/2 2/5/75 10 Kansas City........... 634 2/7/75 71/4 714 2/7/75 734 8i/i 2/7/75 9 9^ 2/7/75 10 Dallas..................... 634 2/5/75 714 714 2/5/75 734 81/2 2/5/75 9 91/2 2/5/75 10 San Francisco........ 634 2/5/75 714 714 2/5/75 734 81/2 2/5/75 9 91/2 2/5/75 10 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955....... 21/2 2 Vi 1964—Nov. 24. 31/2-4 4 1971—Nov. 11............ 434-5 5 30. 4 4 19............ 434 434 1956—Apr. 13.................... 2 Vi-3 234 Dec. 13............ 41/2-434 434 20.................... 234-3 234 1965—Dec. 6. 4 -4i/2 4% 1 7 41/2-434 41/2 234-3 3 13. 41/2 41/2 24............ 41/2 41/2 31.................... 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15............ 5 5 1957—Aug. 9.................... 3 -314 3 14. 4 4 Feb. 26............ 5 -51/2 5i/i Nov. 2 1 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 -3 /2 V4 3 3 *i Nov. 2 2 0 7. . 4 41 - / 4 2 1/2 4 41 % /2 M Ap a r r . . 2 2 3 . . . . . . . .. .. . . . . . . . . . . .. . 51/2 5V -5 i 34 5 5 1 V /2 i 1958—J M A a p n a r . r . . 2 2 2 1 1 7 2 4 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 1 3 3 1 1 3 3 4 4 2 4 4 4 1 - - - - - 2 / 3 2 3 3 4 1 3 / 4 4 2 2 2 2 3 3 l 3 1 1 1 34 / / 4 4 4 4 1968— A M D A p e u a c r g r . . . . 2 2 2 3 1 1 1 1 2 6 0 9 6 5 0 8 . . . . . . . . 4 5 5 5 1 1 * / 4 5 5 5 5 4 2 1 - - 1 - V - 5 / 5 5 4 5 2 i 1 V 1 / /2 2 i 4 5 5 5 5 5 5 5 1 1 1 1 1 1 V h / / h / 4 2 2 2 i . J M J A u u u n l a y g y e . 1 1 1 2 1 1 4 2 1 1 4 8 . . . 5 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 5 3 6 6 7 7 5 4 1 - 3 - 1 6 - / / 6 4 2 2 7 1 1 /2 /2 6 6 7 7 6 6 7 5 1 1 V V 3 / / 4 2 2 i i l34 134 l34-2 134 1969—Apr. 4. 51/2-6 6 1974—Apr. 25........... 7 Vi-8 8 1*4-2 2 6 6 30........... 8 8 23.................... 2 2 Dec. 9............ 734-8 734 Oct. 24.................... 2 -21/2 2 1970—Nov. 11. 534-6 6 1 6 734 734 Nov. 7.................... 21/2 2Vi 1 1 3 6 . . 5% 53 -6 4 5 5 3 3 4 4 1975—Jan. 6............ 714-734 73/4 1959—Mar. 6.................... 21/2-3 3 Dec. 1. 51/2-53/4 534 10........... 714-734 71/4 16.................... 3 3 4. 51/2-53/4 5 Vi 2 4 71/4 71/4 June 12.................... 3 3 - V 3 i Vi 3 3V V i i 11. 51/2 51/2 Feb. 5 7 . . . . . . . . . . . . . . . . . . . . . . 63 6 4 3 - / 7 4 14 6 6 3 3 4 4 Sept. 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31/ 4 2-4 4 4 1971—Jan. 15. 51/4 51 - /4 5 1/2 5 5 1 1 / / 4 4 In effect, Feb. 28, 1975 63/4 634 1960—June 1 3 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 V /2 i- - 4 4 4 31/2 2 2 1 2 9 9. . . 5 5 - - 5 5 1 1 4 /4 5 5 5 1/4 Sept. 1 9 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 -3 /2 1/2 3 3 3 1/i J F u e l b y . 1 1 1 9 6 3 . . . 4 4 4 3 3 3 /4 4 4 - - 5 5 5 5 434 1963—July 17................... 3 -31/2 3Vi 23. 5 5 26................... 31/2 3Vi Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963........... 161/2 12 d 1966—July 14,21 . 4 4 5 Sept. 8,15.... 6 1967—Mar. 2............. 31/2 31/2 Mar. 16.......... 3 3 1968—Jan. 11,18.... 16Vi 17 12 121/2 1969—Apr. 17........... 17 17% 121/2 13 1970—Oct. 1............... 5 Beginning Nov. 9, 1972 Net demand 2,4 Time 3 Other time Effective date 0-2 2-10 10-100 100-400 Over Savings Over 5 5, maturing in— 400 0-5 30-179 180 days days and over 1972—Nov. 9............. 8 10 12 6 16i/i 171/2 7 3 7 3 75 Nov. 16........... 13 1973—July 19............. IOI/2 12i/i 131/2 18 1974—Dec. 12........... 171/2 6 3 1975—Feb. 13........... 71/2 10 12 13 16i/2 In effect Feb. 28,1975 m 10 12 13 16i/2 3 3 6 3 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks........... 10 22 Net demand deposits, other banks..................... 7 14 Time deposits.......................................................... 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 8 per cent. The requirement was 10 per cent originally, The requirement applied to balances above a specified base, but was not was increased to 20 per cent on Jan. 7,1971, and was reduced to the current applicable to banks having obligations of these types aggregating less 8 per cent effective June 21, 1973. Initially certain base amounts were than $10 million. For details, including percentages and maturity classifi­ exempted in the computation of the requirements, but effective Mar. 14, cations, see “Announcements” in Bulletins for May, July, Sept., and 1974, the last of these reserve-free bases were eliminated. For details, see Dec. 1973 and Sept. and Nov. 1974. Regulations D and M. 6 The 16^ per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 7 See columns above for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ serve cities, and on the same date requirements for reserves against net Note.—Required reserves must be held in the form of deposits with demand deposits of member banks were restructured to provide that each F.R. Banks or vault cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ MARCH 1975 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type and size Type and size of deposit July 20, Sept. 26, Apr. 19, Jan. 21, of deposit July 1, Nov. 1, Nov. 27, Dec. 23, 1966 1966 1968 1970 1973 1973 1974 1974 Savings deposits............... 4i/i Savings deposits......................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity): 30-89 days........... 4 41/i Less than $100,000: 90 days to 1 year. 5 30-89 days.......................... 5 5 5 5 1-2 years............. 5 51/i 90 days to 1 year............... 51/2 5 Vi 5 Vi 51/2 2 years or more... 5% l-2i/i years......................... 6 6 6 6 Single-maturity: 2i/i years or more............. 6i/i 61/2 6Vi 61/2 Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000: 2 1 - y 2 e a y r e s a o r r s . m .... o ... r . e ... . . . 5Vi 5 5 1 3 / 4 i 4 6 - y 6 e y ar e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . . . . . (4) 714 m 7 71 1 / 4 2 $100,000 or more: Governmental units.......... (5) (5) 71/2 7% 30-59 days........... 5% (3) $ 100,000 or more................. (3) (3) (3> (3) 60-89 days........... 5% (3) 90-179 days......... SVi 5i/i 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r y e. e . a . r 161/4 ( ( 3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see Effective Nov. 1, 1973, a ceiling rate of llA per cent was imposed on Bulletin for Feb. 1968, p. 167. certificates maturing in 4 years or more with minimum denominations 2 Multiple-maturity time deposits include deposits that are automati­ of $1,000. There is no limitation on the amount of these certificates that cally renewable at maturity without action by the depositor and deposits banks may issue. that are payable after written notice of withdrawal. 5 Prior to Nov. 27, 1974, no distinction was made between the time 3 Maximum rates on all single-maturity time deposits in denominations deposits of governmental units and of other holders, insofar as Regula­ of $100,000 or more have been suspended. Rates that were effective tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, Jan. 21, 1970, and the dates when they were suspended are: governmental units were permitted to hold savings deposits and could receive interest rates on time deposits with denominations under $100,000, 3 6 0 0 - -8 5 9 9 d d a a y y s s 6 6V V£ i p p e e r r c c e e n n t t ) f June 24, 1970 i d r e re p s o p s e it c s t iv a e t a o n f y m F a e tu de ri r t a y l , l y a s i n h s i u g r h e d a s d e th p e o s m ita a r x y im in u s m ti t r u a ti t o e n p . ermitted on such 90-179 days 6% per cent j 180 days to 1 year 7 per cent [ May 16, 1973 Note.—Maximum rates that may be paid by member banks are estab­ 1 year or more 7 Vi per centj lished by the Board of Governors under provisions of Regulation Q; however, a member bank may not pay a rate in excess of the maximum Rates on multiple-maturity time deposits in denominations of $100,000 rate payable by State banks or trust companies on like deposits under or more were suspended July 16, 1973. when the distinction between the laws of the State in which the member bank is located. Beginning single- and multiple-maturity deposits was eliminated. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates commercial banks, as established by the FDIC, have been the same as maturing in 4 years or more with minimum denominations of $1,000. those in effect for member banks. The amount of such certificates that a bank could issue was limited to For previous changes, see earlier issues of the Bulletin. 5 per cent of its total time and savings deposits. Sales in excess of that amount were subject to the 6J/i per cent ceiling that applies to time de­ posits maturing in 2Vi years or more. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) T U G T U G 1937—Nov. 1 1945—Feb. 40 50 1945—Feb. 5 July 50 50 July 5 1946—Jan. 20................... 75 75 1946—Jan. 21 1947—Jan. 100 100 1947—Feb. 1 1949—Mar. 29................... 75 75 1949—Mar. 30 1951—Jan. 16................... 50 50 1951—Jan. 17 1953—Feb. 19................... 75 75 1953—Feb. 20 1955—Jan. 50 50 1955—Jan. 4 Apr. 22................... 60 60 Apr. 23 1958—Jan. 15................... 70 70 1958—Jan. 16 Aug. 4................... 50 50 Aug. 5 Oct. 15................... 70 70 Oct. 16 1960—July 27................... 90 90 1960—July 28 1962—July 70 70 1962—July 10 1963—Nov. 5................... 50 50 1963—Nov. 6 1968—Mar. 10................... 70 70 1968—Mar. 11 June 7................... 70 50 70 June 8 1970—May 80 60 80 1970— May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan., 3, 1974....................... 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Digitized for FRMAaSrE. 1R1 , 1968. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 o OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills * Others within 1 year 2 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur­ sales tions pur­ sales shifts, or pur­ sales maturity pur­ sales maturity pur­ sales maturity chases chases redemp­ chases shifts chases shifts chases shifts tions 1970. 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 1971. 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 1972. 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1974. 11,660 5,830 4,550 450 -1,314 797 -697 434 1,675 196 205 1974—Jan.., 1,340 335 1,402 93 77 Feb.. 768 391 410 687 30 -922 200 35 Mar.. 664 566 165 109 25 Apr.. 1,237 49 407 172 May. 737 100 112 2,563 26 -2,663 ioo June. 614 954 204 48 34 July.. 988 211 27 53 Aug.. 1,652 850 -2,867 1,057 1,940 -130 Sept.. 717 565 786 22 -200 65 200 53 37 Oct... 547 1,110 1,063 Nov.. 1,422 273 107 148 -1,623 92 1,757 '-465 *200 Dec.. 973 426 6 85 126 123 -126 1975—Jan... 341 945 600 305 26 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright ] transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Period Govt, chase Net securi­ agree­ change ^ Gross Gross Gross ties Gross Sales or ments, Repur­ pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ chase chases sales tions sales chases chases sales chases tions right agree­ ments 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 1974—Jan.. 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 -328 Feb.. 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 72 Mar.. 854 566 165 702 702 6,248 5,124 1,246 170 48 185 223 1,780 Apr.. 1,409 49 407 8,069 8,498 524 360 48 33 —89 789 May. 944 100 4.586 4,586 9,192 8,648 1,388 201 15 424 16 142 2,155 June. 790 954 204 4,580 4,580 6,124 6,667 -911 309 72 -372 -70 -1,115 July. 1,113 211 2.587 4,269 4,965 -2,381 761 35 -270 121 -207 -2,011 Aug.. 1,652 850 9,061 ’i i *287 2,096 2,096 3,028 238 3 59 3,322 Sept.. 893 565 786 9,420 9,782 3,551 3,551 -96 207 16 40 187 322 Oct.. 547 1,110 1,063 12,574 12,516 4,618 4,618 -1,684 -100 -185 -1,970 Nov.. 1,765 273 238 6,880 6,404 6,990 6,121 1,647 331 369 174 218 2,739 Dec.. 1,254 426 6 8,855 7,962 11,470 11,895 -498 360 142 188 201 393 1975—Jan.. 746 945 600 9,237 10,367 9,260 8,748 844 14 -409 103 -136 387 1 Before Nov. 1973 Bulletin, included matched sale-purchase trans­ 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers’ acceptances. 2 Includes special certificates acquired when the Treasury borrows Note.—Sales, redemptions, and negative figures reduce System hold­ directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings; all other figures increase such holdings. Details may not add to 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131. totals because of rounding. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o e u rl n in d g s B fr e a lg n i c a s n C d a o n l a la d r i s an F fr r a e n n c c s h G m er a m rk a s n Ita li l r i e an Jap y a e n n ese M pe ex so ic s o g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1970........................................ 257 154 * * 98 1 * 4 1971........................................ 18 3 3 * 2 1 8 1q72......................................... 192 * * * 164 1 20 6 1973—Nov.............................. 4 * * * 1 3 Dec.............................. 4 * * * 1 3 1974—Jan............................... 1 * * * 1 Feb............................... 32 * 20 * 10 1 Mar.............................. 6 * 5 * * 1 Apr............................... 6 * 5 * * 1 May............................. 63 * 5 * 57 1 Jone............................. 90 * 5 * 84 1 July.............................. 8 * 1 * 6 1 Aug.............................. 220 * * * 39 1 180 Sept.............................. 242 * * * 61 1 180 Oct.......... ............ 190 * 1 * g 1 180 Digitized for FRANSovE..R... ......................... 40 * * * 38 1 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ MARCH 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Feb. 26 Feb. 19 Feb. 12 Feb 5 Jan. 29 Feb. 28 Jan. 31 Feb. 28 Assets Gold certificate account................................. 11,621 11,621 11,625 11,629 11,635 11,621 11,635 11,460 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash...................................................... 346 339 332 322 309 360 328 307 Loans: Member bank borrowings.............. 834 1,125 117 89 159 77 103 720 Other................................................ Acceptances: Bought outright............................... 657 630 628 659 658 669 682 69 Held under repurchase agreements. 222 6 314 8 221 324 284 Federal agency obligations: Bought outright................................ 4,607 4,650 4,650 4,650 4,688 4,983 4,688 2,001 Held under repurchase agreements. 258 364 151 347 102 U.S. Govt, securities: Bought outright: Bills........................... 35,484 35,612 35,377 35,545 36,739 35,139 36,674 36,467 Certificates—Special. Other.. Notes......................... 40,495 40,253 40,403 40,403 40,403 40,495 40,403 38,796 Bonds......................... 3,535 3,461 3,311 3,311 3,311 3,535 3,311 2,974 Total bought outright..................... i 79,514 1 79,326 1 79,091 1 79,259 i 80,453 i 79,169 1 80,388 i 78,237 Held under repurchase agreements. 2,507 2,049 1,013 1,917 956 Total U.S. Govt, securities. 82,021 79,326 81,140 79,259 81,466 81,086 81,344 78,237 Total loans and securities.................. * 88,599 p 85,737 87,213 84,665 87,343 p87,486 87,203 81,027 Cash items in process of collection... v 7,061 p 9,031 7,547 10,389 7,404 p5,524 5,646 7,333 Bank premises..................................... 271 269 269 267 271 268 226 Other assets: Denominated in foreign currencies. 2 2 2 2 2 2 2 32 All other........................................... 2,467 2,713 3,309 4,394 3,329 2,732 3,248 700 Total assets. p 110,767 p 110,112 110,697 112,070 110,689 p108,396 108,730 101,485 Liabilities F.R. notes........................................... 68,302 68,696 68,786 68,161 67,944 68,078 67,617 62,247 Deposits: Member bank reserves.................. p 30,247 p 27,396 31,336 32,175 30,049 p28,530 28,839 27,989 U.S. Treasury—General account. 3,187 3,040 1,308 779 3,442 2,884 3,540 2,016 Foreign........................................... 271 319 250 277 334 409 391 542 Other: All other2....................................... 851 700 683 732 708 901 748 679 Total deposits. p 34,556 p 31,455 33,577 33,963 34,533 p32,724 33,518 31,226 Deferred availability cash items........... 4,680 6,729 5,160 5,087 4,766 4,268 4,180 4,921 Other liabilities and accrued dividends. 1,040 1,148 1,211 2,985 1,191 1,098 1,112 988 Total liabilities....................................... p 108,578 p 108,028 108,734 110,196 108,434 *106,168 106,427 99,382 Capital accounts Capital paid in............................................................. 898 898 897 901 901 898 901 862 Surplus.......................................................................... 897 897 897 897 897 897 897 844 Other capital accounts................................................. 394 289 169 76 457 433 505 397 Total liabilities and capital accounts.......................... p 110,767 p110,112 110,697 112,070 110,689 *108,396 108,730 101,485 Contingent liability on acceptances purchased for foreign correspondents............................................ 149 196 269 316 395 130 384 592 Marketable U.S. Govt, securities held in custody for foreign and international accounts.................. 36,851 36,496 35,367 35,111 34,980 37,612 35,084 25,233 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)......... 74,233 74,305 74,542 74,448 74,641 74,245 c74,538 66,921 Collateral held against notes outstanding: Gold certificate account................................ 3,457 3,457 3,457 3,207 3,047 3,457 «3,207 2,255 Special Drawing Rights certificate account. 93 93 93 93 93 93 93 Acceptances.................................................... 425 425 425 425 425 425 425 U.S. Govt, securities..................................... 72,162 72,062 72,062 72,492 72,760 72,162 c72,492 66,600 Total collateral. 76,137 76,037 76,037 76,217 76,325 76,137 c 76,217 68,855 1 See note 2 on p A-4. 2 See note 6 on page A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ FEDERAL RESERVE BANKS; BANK DEBITS A 13 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Feb. 26 Feb. 19 Feb. 12 Feb. 5 Jan. 29 Feb. 28 Jan. 31 Feb. 28 834 1,125 118 89 159 77 101 721 833 1,124 111 79 148 74 91 712 16-90 days................................................................... 1 1 7 10 11 3 10 9 91 days to 1 year......................................................... Acceptances—Total........................................................ 879 636 942 667 879 993 966 69 Within 15 days............................................................ 358 136 450 163 405 470 457 29 16-90 days................................................................... 419 418 378 387 375 425 397 40 91 days to 1 year......................................................... 102 82 114 117 99 98 112 U.S. Govt, securities—Total.......................................... 82,021 79,326 81,140 79,259 81,466 81,086 81,344 78,237 7,330 4,852 8,519 6,086 6,652 4,649 6,324 4,166 20,547 21,022 16,343 17,309 18,563 22,196 18,535 18,958 91 days to 1 year........................................................ 20,962 20,586 20,975 20,561 20,948 21,059 21,182 23,301 20,733 20,604 23,440 23,440 23,440 20,733 23,440 22,235 10,035 9,922 9,673 9,673 9,673 10,035 9,673 7,780 Over 10 years.............................................................. 2,414 2,340 2,190 2,190 2,190 2,414 2,190 1,797 4,865 4,650 5,014 4,650 4,839 5,330 4,790 2,001 Within 15 days1.......................................................... 423 90 407 202 514 153 48 16-90 days................................................................... 122 169 216 259 217 122 260 63 91 days to 1 year........................................................ 541 587 587 587 616 608 573 248 1-5 years...................................................................... 2,374 2,313 2,313 2,313 2,313 2,541 2,313 846 5-10 years.................................................................... 904 990 990 990 990 1,025 990 557 Over 10 years.............................................................. 501 501 501 501 501 520 501 239 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1974—Jan................................ 18,817.7 8,081.0 4,517.1 10,736.8 6,219.6 111.5 270.3 116.2 77.3 62.2 Feb............................... 19,813.7 8,896.2 4,582.1 10,917.5 6,335.4 118.0 294.2 119.9 79.3 63.7 Mar.............................. 20,166.9 8,914.4 4,718.0 11,252.5 6,534.6 118.3 292.5 120.8 80.3 64.7 20,062.3 8,637.9 4,747.6 11,424.3 6,676.7 115.4 274.6 119.7 80.2 65.0 May............................. 20,564.7 8,970.1 4,820.8 11,594.6 6,773.8 117.1 275.3 122.3 81.1 65.4 June........................... 20,457.3 9,065.7 4,768.0 11,391.6 6,623.6 116.9 279.9 120.0 79.8 64.3 July.............................. 20,899.6 9,140.4 4,892.1 11,759.2 6,867.1 119.8 282.1 123.5 82.8 67.0 Aug.............................. 21,478.3 9,240.8 5,173.0 12,237.5 7,064.5 123.4 286.4 132.0 86.3 68.8 Sept.............................. 22,017.5 9,970.8 5,092.1 12,046.7 6,954.7 125.1 310.5 127.5 83.7 66.9 Oct............................... 22,348.8 10,271.1 5,084.7 12,077.6 6,993.0 127.0 316.8 127.3 84.1 67.5 Nov.............................. 22,918.7 10,538.9 5,160.2 12,379.8 r7,219.6 131.8 324.6 131.5 '87.5 70.6 Dec............................... '22,192.4 9,931.8 r5,152.7 ’'12,260.6 r7,107.9 r128.0 312.8 r131.8 '86.6 69.3 1975—Jan................................ 21,849.8 10,157.8 4,863.2 11,691.9 6,828.8 127.2 321.8 125.9 83.4 67.3 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 MONEY STOCK □ MARCH 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjustedr Not seasonally adjusted r Month or week Mi Mi Mi Mi Mi Ms Composition of measures is described in the Note below. 1971—Dec.................................. 235.3 473.1 727.9 241.9 All.9 730.9 1972--Dec.. . . . . .............. 255.8 525.7 823.3 263.0 530.7 826.3 1973—Dec.. ............................... 271.5 572.2 895.0 279.1 577.3 898.2 1974—Jan., . .............................. 270.9 575.5 900.4 277.8 581 .4 905.7 Feb................................. 273.1 580.9 907.5 270.2 578.5 905.1 Mar............................. 275.2 585.5 914.6 272.5 584.9 915.4 Apr.................................. 276.6 589.4 920.2 278.2 593.5 926.3 May.... , ................. 277.6 591 .6 922.8 272.9 589.7 922.0 June................................. 280.0 597.1 929.6 278.2 596.6 930.6 July...,......................... 280.5 599.7 933.4 280.1 599.3 934.5 Aug.................................. 280.7 602.2 936.4 277.5 598.7 932.5 Sept................................. 281 .1 603.8 938.8 219 A 600.7 934.5 Oct.. ................................ 282.2 608.1 944.4 281.7 606.3 941 .1 Nov................................. 283.8 613.0 951.1 285.3 611 .1 947.0 Dec.................................. 284.3 614.3 955.0 292.2 619.4 958.3 1975—Jan.*............................... 282.2 615.9 959.5 289.2 621 .8 964.8 Note.—Composition of the money stock measures is as follows: Ms: Mi plus the average of the beginning- and end-of-month figures for deposits of mutual savings banks and for savings capital of savings Mu Averages of daily figures for (1) demand deposits of commercial and loan associations. banks other than domestic interbank and U.S. Govt., less cash items in N.B. Latest monthly and weekly data—including some revisions going process of collection and F.R. float; (2) foreign demand balances at F.R. back to 1970—are shown in the Board’s H.6 release for Feb. 20, 1975. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For general description and other back data, see “Revision of Money commercial banks. Stock Measures and Member Bank Reserves and Deposits” on pp. 817-27 Mi\ Averages of daily figures for Mi plus savings deposits, time de­ of the Dec. 1974 Bulletin. posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjustedr Not seasonally adjusted r Commercial banks Commercial banks U.S. Month Time and savings Non­ Time and savings Non­ Govt. or deposits bank Demand deposits deposits bank de­ week Cur­ De­ thrift Cur­ thrift pos­ ren­ mand insti­ ren­ insti­ its3 cy de­ tu­ cy Do- tu­ pos­ tions2 mes- tions2 its CD’s1 Other Total Total Mem­ tic- CD’s1 Other Total ber nonmember 1971—Dec.. 52.6 182.7 33.5 237.7 271.2 254.9 53.5 188.4 142.6 44.1 33.8 236.0 269.8 253.0 6.9 1972—Dec.. 56.9 198.9 43.9 269.9 313.8 297.5 57.9 205.1 152.4 51.4 44.2 267.6 311.8 295.6 7.4 1973—Dec.. 61.6 209.9 63.8 300.7 364.5 '■322.8 62.7 216.4 157.0 56.6 64.0 298.2 362.2 r321.0 6.3 1974—J F a e n b . . . . . 6 62 2 . . 7 0 2 2 0 1 8 0 . . 9 4 66 6 68 8 .. . 24 0 3 3 0 0 4 7 . . 6 8 3 3 7 7 1 6 . . 0 0 3 3 2 2 4 6 . . 9 6 6 6 1 1 . . 9 6 2 20 1 8 6 . . 3 2 1 15 5 1 6 . . 1 4 5 5 6 4 . . 9 6 6 66 5 . . 1 8 3 30 0 8 3 . . 3 6 3 3 7 6 4 9 . . 4 4 3 3 2 2 4 6 . . 2 6 6 8. . 1 6 Mar.. 63.3 211.9 310.3 378.3 329.2 62.7 209.8 152.3 54.7 66.7 312.4 379.1 330.5 6.4 Apr.. 63.9 212.8 73.9 312.7 386.7 330.8 63.5 214.7 155.8 56.2 71.8 315.3 387.1 332.8 6.0 May. 64.3 213.3 78.5 314.0 392.5 331.2 64.1 208.8 151.3 54.8 77.2 316.7 393.9 332.4 7.6 June. 64.6 215.4 81 .3 317.1 398.4 332.4 64.8 213.5 153.6 56.1 79.6 318.3 397.9 334.0 6.1 July.. 64.8 215.7 83.6 319.2 402.8 333.7 65.3 214.8 154.4 56.6 82.8 319.2 402.0 335.3 5.4 Aug.. 65.5 215.3 83.8 321.5 405.2 334.2 65.7 211.9 152.3 56.3 87.1 321.1 408.2 333.8 4.0 Sept.. 65.9 215.3 84.8 322.7 407.5 335.0 65.8 213.6 153.3 57.0 88.7 321.3 410.1 333.8 5.5 Oct... 66.5 215.7 86.2 325.9 412.1 336.2 66.4 215.3 154.4 57.7 88.8 324.6 413.3 334.8 3.7 Nov.. 67.3 216.5 85.5 329.2 414.7 338.2 67.8 217.5 155.9 58.4 87.1 325.8 412.9 335.9 3.3 Dec.. 67.7 216.6 90.3 330.0 420.3 340.7 68.9 223.3 160.3 59.7 90.5 327.2 417.6 338.9 4.8 1975—Jan.* 68.0 214.1 92.9 333.7 426.7 343.6 67.6 221.6 158.7 59.7 92.1 332.6 424.7 343.0 4.0 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non­ Total bor­ Re­ Avail­ Demand Demand rowed quired able2 Time Time Total and U.S. Total and U.S. S.A. N.S.A. savings Private Govt. savings Private Govt. 1970—Dec....... 29.20 28.87 28.95 27.13 321.3 178.9 136.0 6.4 325.2 178.1 141.1 6.0 333.4 337.2 1971—Dec....... 31.33 31.20 31.15 29.03 360.3 210.7 143.8 5.8 364.6 209.7 149.2 5.7 365.2 369.5 1972—Dec....... 31.46 30.41 31.17 29.09 402.0 242.0 154.5 5.6 406.8 240.7 160.1 6.1 406.4 411.2 1973—Dec....... 35.16 33.87 34.86 32.97 442.2 280.0 158.2 3.9 447.5 278.5 164.0 5.0 448.7 454.0 1974—Jan .... 35.82 34.77 35.66 32.82 446.8 284.1 157.5 5.1 453.0 283.1 163.4 6.5 453.3 459.5 Feb....... 35.12 33.92 34.93 32.90 447.5 287.4 157.9 2.2 447.1 285.7 156.3 5.1 454.4 454.0 Mar.... 34.98 33.66 34.84 33.13 450.4 288.6 158.7 3.2 450.4 288.6 156.9 4.9 457.9 457.9 Apr....... 35.88 34.15 35.70 33.66 461.2 296.6 160.0 4.6 462.5 296.2 161.5 4.8 469.2 470.6 May.... 36.52 33.93 36.34 34.26 467.0 302.3 159.1 5.6 464.7 303.0 155.6 6.1 475.8 473.5 June___ 36.74 33.73 36.54 34.71 472.9 307.0 160.6 5.3 470.0 306.4 158.9 4.7 481.2 478.4 July.... 37.40 34.10 37.24 34.96 475.7 310.7 160.7 4.2 474.3 310.1 160.0 4.1 484.9 483.5 Aug.. .. 37.27 33.93 37.08 35.27 478.5 312.4 159.9 6.2 475.1 315.3 157.0 2.9 487.5 484.2 Sept___ 37.28 34.00 37.09 35.30 480.6 314.4 159.9 6.3 479.6 317.2 158.3 4.1 489.1 488.2 Oct....... 36.86 35.04 36.73 34.89 480.5 317.2 159.5 3.7 480.5 318.6 159.1 2.7 488.3 488.3 Nov.... 36.87 35.62 36.67 34.87 483.6 318.4 160.6 4.6 481.2 317.4 161.4 2.4 491.2 488.8 Dec....... 36.91 36.18 36.65 34.63 485.9 323.4 160.7 1.9 491.8 321.7 166.6 3.5 494.3 500.1 1975—Jan........ 36.95 36.55 36.79 34.43 488.2 328.5 159.1 0.7 495.1 327.1 165.0 2.9 495.8 502.6 1 Averages of daily figures. Member bank reserve series reflects actual by Regulation D. Private demand deposits include all demand deposits reserve requirement percentages with no adjustment to eliminate the except those due to the U.S. Govt., less cash items in process of collection effect of changes in Regulations D and M. Required reserves were in­ and demand balances due from domestic commercial banks. creased by $660 million effective Apr. 16, 1969, and $400 million effective 4 “Total member bank deposits” subject to reserve requirements, plus Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Euro-dollar borrowings, loans sold to bank-related institutions, and Required reserves were reduced by approximately $2.5 billion, effective certain other nondeposit items. This series for deposits is referred to as Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 “the adjusted bank credit proxy.” million effective Nov. 22. Note.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 817-27 of the Dec. 1974 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments1 Total1 loans Plus Treas­ Other4 ments 1 Total1 loans Plus Treas­ Other4 sold2 Total loans ury sold2 Total loans ury sold2 sold2 1970—Dec. 31___ 435.5 291.7 294.7 110.0 112.1 57.9 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31___ 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31___ 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31___ 630.3 447.3 451.6 155.8 158.4 52.8 130.2 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Mar 27........ 657.5 468.2 473.1 165.1 167.9 56.4 132.9 654.0 463.0 467.9 164.9 167.7 57.5 133.5 Apr. 24......... 666.9 476.3 481.7 169.5 172.6 57.1 133.5 664.2 473.0 478.4 170.2 173.3 56.4 134.7 May 29......... 673.4 481.4 487.1 172.9 176.0 57.2 134.8 669.8 480.3 485.9 172.3 175.4 54.1 135.5 June 305.... 677.5 484.5 489.9 174.6 177.5 56.4 136.6 681.6 491.8 497.2 177.2 180.1 52.1 137.6 July 31*.... 686.6 494.3 499.7 177.9 180.8 55.8 136.5 685.4 496.6 502.0 178.3 181.2 52.2 136.6 Aug. 28*___ 692.0 500.2 2505.5 180.7 2183.6 55.3 136.5 687.5 499.3 2504.6 179.1 2182.0 52.0 136.2 Sept 25*----- 687.0 498.2 503.5 180.8 183.6 52.2 136.6 686.6 499.2 504.5 180.9 183.7 50.6 136.7 Oct. 30*___ 687.1 499.5 504.7 182.5 185.3 49.7 137.9 685.8 498.2 503.4 181.3 184.1 50.6 137.0 Nov. 27* 6.. 688.5 500.9 505.8 183.0 185.7 49.3 138.3 688.2 499.1 504.1 182.0 184.7 52.2 136.8 Dec. 31*___ 681.2 494.1 498.9 180.5 183.3 48.8 138.3 699.6 506.5 511.3 184.7 187.5 54.4 138.8 1975—Jan. 29*.... 686.1 498.3 502.9 181.7 184.4 48.9 138.9 685.1 493.5 498.1 179.6 182.3 53.7 138.0 Feb. 26*.... 687.9 495.1 499.6 180.0 182.6 53.4 139.4 682.2 489.0 493.4 178.2 180.8 54.8 138.4 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright for banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re­ was also different. On the new basis, both ‘Total loans” and “Com­ classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by Note.—Total loans and investments: For monthly data, Jan. 1959— about $400 million as of June 30, 1972. June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, 4 Farmers Home Administration insured notes included in ‘Other Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current securities” rather than in loans beginning June 30, 1971, when such notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaled about $700 million. the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: 5 Data beginning June 30, 1974, include one large mutual savings For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. bank that merged with a nonmember commercial bank. As of that date A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for there were increases of about $500 million in loans, $100 million in “Other last Wednesday of month except for June 30 and Dec. 31; data are partly Digitized foserc FurRitiAesS,”E aRnd $600 million in “Total loans and investments.” or wholly estimated except when June 30 and Dec. 31 are call dates. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS □ MARCH 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets 3 bilities row­ ac­ of insurance Total Loans and Total 3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Time5 ury 2 counts4 U.S. Govt. Other Last-Wednesday-of-month series 6 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 317. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31.. 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 31.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31.. 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31.. 598, 414,696 67,028 117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31.. 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Feb. 27.. 681,360 491.950 57,670 740102,410 818,690 652,670 31,620 6,200 6,650 233,240 374,960 68,090 58.730 14,202 Mar. 27.. 691,080 500,100 57,510 470104,430 831,500 661,180 32,030 6,490 6,110 235,830 380,720 69,930 59,310 14,236 Apr. 24.. 699,290 508,140 56,410 740102,360 838,740 669,730 31,450 7,290 5,900 236,170 388,920 67,580 59,950 14,261 May 29.. 703,820 514,280 54,080 460115,575 857,695 683,175 34,870 8,200 5,940 238,215 395,950 69,910 60,330 14,290 June 30... 718,713 528.951 52,114 648126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 14,337 July 31 ®.. 719,930 531,110 52,210 610107,730 871,560 694,620 33,660 9,680 4,320 243,620 403,340 67,820 61,490 14,368 Aug. 28®.. 720,430 532,230 51,970 230100,390 863,640 687,270 30,780 9,970 4,010 235,330 407,180 66,750 61,440 14,384 Sept. 25®.. 718.560 531.210 50,630 720107,020 870.400 691.030 30,13010,610 7,270 235,850 407,170 67,130 61.730 14,399 Oct. 30®.. 720,010 532,400 50,640 970110,370 876.400 698.030 33,60010,180 2,980 242,130 409,140 67,330 62,020 14,423 Nov. 27®.. 726,250 537.210 52,230 810115,740 890,330 706,010 34,95010,310 3,790 247,840 409,120 70,100 62,100 14,441 Dec. 31®.. 739,770 546,660 54,360 750126,090 916,320 746,760 45,37011,250 4,540 267,350 *18,250 55,870 63,070 14,457 1975—Jan. 29®.. 721.560 529,940 53,660137,960101,560 871,180 699,770 30,79011,380 4,370 233,210 420,020 60,990 64,010 14.476 Feb. 26®., 721,580 528,370 54,810138,400103,750 874,570 699,640 30,68010,080 2,560 233,930 422,390 63,600 64,460 14.476 Members of F.R. System: 1941-Dec. 31... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31... 165.619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5.767 1971—Dec. 31... 405,087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—Dec. 31... 528,124 391,032 41,494 95,598100,098 655, S 526.837 34,782 5,843 8,273 202,564 275,374 55,611 44.741 5,735 1974—Feb. 27... 522,816 385,879 40,922 96,015 87,753 639.172 500,113 29,753 5.273 5,084 178,731 281,272 63,865 45.054 5,747 Mar. 27... 529,961 392,461 40,537 96,963 89,568 649,114 506,641 30,083 5,558 4,817 180,862 285,321 65,428 45,491 5,754 Apr. 24... 535,917 399,092 39,273 97.552 87,005 653,285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 5.763 May 29... 538.801 403,619 37,282 97,900 99,155 669,357 524.837 32,452 7.274 4,746 182,060 298.305 64,820 46,090 5.763 June 30... 550,388 415,061 35,934 99,393 108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 5,761 July 31... 552.619 418,065 35,860 98,694 91,430 680,511 533,807 31,153 8,598 3,180 186,360 304.516 63,042 46,907 5.767 Aug. 28... 552,823 418,705 35,878 98,240 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,814 5.767 Sept. 25... 550,837 417,623 34,683 98,531 91,002 679,160 531,195 27,831 9,522 5,782 180,114 307,946 62,171 47.054 5.775 Oct. 308.. 548.801 416.118 34,813 97,870 93,674 680.173 535,128 31,043 9,089 2.117 184,573 308.306 60,803 47,131 5.776 Nov. 27 ®. 556,031 421,377 36,392 98,262 98,591 694,670 542,460 32,421 9,222 2,858 189,663 308,296 65,411 47,320 5,775 Dec. 31®.. 566,966 429.119 38,374 99,473106,435 715,250 576,231 41,63710,170 3.117 204,646 316,661 51,977 48,019 5,782 1975—Jan. 29®.. 550,264 414,426 37,549 98,289 86,321 676,905 536,256 28,31110,299 3,247 177,701 316,698 56,136 48,411 5.784 Feb. 26®.. 549,214 412,036 38,626 98.552 88,419 679,014 535,250 28,157 8,991 1,989 178,596 317.517 58,868 48.741 5.784 Call date series 1 Insured banks: 1 Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941i 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 I960—Dec. 31... 198,011 117,092 60,468j 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 319.. 458,919 312,006 61,4381 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1971—Dec. 31... 514,097 345,386 64,691,104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,96lj 129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—June 30... 709,904 521,424 51,832136,648123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 61,003 14,108 Oct. 15... 722,622 535,703 186,918 126,098 891,650 718,798 40,185 9,476 3,203 257,086 408,849 67,064 62,687 14,188 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694! 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 319.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—Dec. 31... 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31... 350,743 247,041 37,185 66,516 67,390 434,810!, 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—Dec. 31... 398,236 293,555 30,962 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 4,659 1974—June 30... 418,329 313,659 27,631 77,039 73,703 516,632 407,915 20,086 4,912 5,038 145,954 231,925 48,123 34,966 4,693 Oct. 15... 421,936 319,611 102,324 74,383 522,642 416,656 20,411 6,008 1,808 150,375 238,053 44,504 35,542 4,700 For notes see p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ COMMERCIAL BANKS A 17 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ a i n n d su F ra D nc IC e Total Loa l ns T U re .S as . ­ Ot 2 her assets 3 c b a i a l a p i n c t i i d ­ t e a s l Total 3 m D a e n ­ d Time Demand Tim 5 e r i o n w gs ­ c c a o a p u c i n ­ t t a s l ba b o n e f k r s ury counts 4 U.S. Govt. Other Call date series Insured banks (cont.): State member: 1941—Dec. 31... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 2,246 1,502 1947—Dec. 31... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970_Dec. 319.. 94,760 66,963 11,196 16,600 25,472 125,460101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1971—Dec. 31... 102,813 71,441 11,247 20,125 26,998 135,517111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—Dec. 31... 115,426 82,889 11,530 21,008 29,176 150,697123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Dec. 31... 130,240 97,828 10,532 21,880 29,387 166,780131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—June 30... 132,388 101,732 8,303 22,353 35,268 175,896139,446 19,125 2,906 1,586 47,690 68,138 14,713 11,980 1,068 Oct. 15.. 137,005 105,462 31,543 36,194182,837 140,676 18,472 2,817 577 47,570 71,23919,399 12,206 1,072 Nonmember: 1941—Dec. 31... 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 959 6,810 1947—Dec. 31... 16,444 4,958 10.039 1,448 4,083 20,691 19,342 262 4 149 12,366 6,558 7 1,271 6,478 1960—Dec. 31... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20.140 14,095 19 3,232 6,948 1970—Dec. 319.. 92,399 57,489 16.039 18,871 11,208 106.457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1971—Dec. 31... 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—Dec. 31... 128,333 81,594 17,964 28,774 14,767147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Dec. 31... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—June 30... 159,186 106,033 15, 37,255 14,565 179.457 156,406 1,323 610 1,731 56,580 96,162 2,678 14,057 8,347 Oct. 15.. 163,681 110,630 53,050 15,521 186,171 161,466 1,301 651 816 59.140 99,557 3,161 14,940 8,416 Noninsured nonmember: 1941—Dec. 31... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1947—Dec. 317.. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 I960—Dec. 31... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 319.. 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—Dec. 31... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 1,836 2,215 1,463 524 207 1974—June 30.. . 9,269 7,987 282 1,001 2,951 12,770 6,610 1,481 476 2,209 2,432 2,033 620 229 Total nonmember: 1941—Dec. 31... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319.. 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31... 111,674 69,411 17,297 24,966 13,643 129,100112,764 1,592 359 1.742 45,990 63,081 866 9,932 8,056 1972—Dec. 31... 133,198 85,325 18,313 29,559 16,562154,085134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31... 155,830104,070 16,783 34,976 18,177179,480155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—June 30.. . 168,456 114,020 16,180 38,256 17,516192,227163,016 2,804 1,086 1.743 58,789 98,593 4,711 14,677 8,576 1 Loans to farmers directly guaranteed by CCC were reclassified as owned domestic subsidiaries) and (2) reporting of figures for total loans securities and Export-Import Bank portfolio fund participations were and for individual categories of securities on a gross basis—that is, before reclassified from loans to securities effective June 30, 1966. This reduced deduction of valuation reserves—rather than net as previously reported. “Total loans” and increased “Other securities” by about $1 billion. “Total loans” include Federal funds sold, and beginning with June 1967 Note.—Data are for all commercial banks in the United States (includ­ securities purchased under resale agreements, figures for which are in­ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent cluded in “Federal funds sold, etc.,” on p. A-18. all commercial banks, both member and nonmember; stock savings Effective June 30, 1971, Farmers Home Administration notes were banks; and nondeposit trust companies. classified as “Other securities” rather than “Loans.” As a result of this Figures for member banks before 1970 include mutual savings banks change, approximately $300 million was transferred to “Other securities” as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks for the period ending June 30, 1971, for all commercial banks. are not included in insured commercial banks. See also table (and notes) at the bottom of p. A-26. Effective June 30, 1969, commercial banks and member banks exclude 2 See first 2 paragraphs of note 1. a small national bank in the Virgin Islands; also, member banks exclude, 3 Reciprocal balances excluded beginning with 1942. and noninsured commercial banks include, through June 30,1970, a small 4 Includes items not shown separately. See also note 1. member bank engaged exclusively in trust business; beginning 1973, 5 See third paragraph of note 1 above. excludes 1 national bank in Puerto Rico. 6 For the last-Wednesday-of-the-month series, figures for call dates Beginning Dec. 31, 1973 and June 30, 1974, respectively, member banks are shown for June and December as soon as they became available. exclude and noninsured nonmember banks include 1 and 2 noninsured 7 Beginning with Dec. 31, 1947, the series was revised; for description, trust companies that are members of the Federal Reserve System. see note 4, p. 587, May 1964 Bulletin. Comparability of figures for classes of banks is affected somewhat by 8 Member bank data for Oct. exclude assets of $3.6 billion of one large changes in F.R. membership, deposit insurance status, and by mergers bank. etc. 9 Figure takes into account the following changes, which became Figures are partly estimated except on call dates. effective June 30, 1969: (1) inclusion of consolidated reports (including For revisions in series before June 30, 1947, see July 1947 Bulletin, figures for all bank-premises subsidiaries and other significant majority- pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS □ MARCH 1975 ASSETS BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 All Insured Non­ Account commercialcommercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large Cash bank balances, items in process........................... 126,487 123,536 108,971 36,265 4,217 38,075 30,415 17,516 Currency and coin...................................................... 8,378 8,350 6,245 460 131 1,983 3,671 2,133 30,146 30,146 30,146 6,204 1,319 12,459 10,165 Demand balances with banks in United States........ 31,853 29,824 19,732 7,560 741 3,503 7,928 12,121 Other balances with banks in United States............ 2,517 2,080 1,295 99 71 456 669 1,222 Balances with banks in foreign countries................. 1,386 1,011 884 221 70 498 96 502 Cash items in process of collection........................... 52,207 52,125 50,669 21,722 1,885 19,176 7,886 1,538 Total securities held—Book value................................. 189,762 188,480 135,326 15,193 5,266 44,738 70,129 54,436 U.S. Treasury.............................................................. 52,114 51,832 35,934 3,715 1,207 11,586 19,426 16,180 Other U.S. Govt, agencies.......................................... 31,359 31,001 20,523 2,123 923 5,960 11,518 10,835 States and political subdivisions................................ 99,870 99,466 74,457 8,578 2,930 25,850 37,099 25,413 All other securities...................................................... 6,420 6,180 4,412 777 206 1,342 2,087 2,008 Trade-account securities............................................. 6,370 6,368 6,281 2,162 539 3,293 288 88 U.S. Treasury.......................................................... 707 705 691 -22 141 531 42 16 Other U.S. Govt, agencies...................................... 1,472 1,472 1,462 505 148 774 35 10 States and political subdivisions............................ 3,921 3,921 3,876 1,616 250 1,802 207 45 269 269 253 63 186 4 17 Bank investment portfolios........................................ 183,393 182,112 129,045 13,031 4,727 41,445 69,842 54,348 U.S. Treasury.......................................................... 51,407 51,127 35,243 3,738 1,066 11,056 19,384 16,164 Other U.S. Govt, agencies...................................... 29,886 29,528 19,061 1,617 775 5,186 11,483 10,825 States and political subdivisions............................ 95,949 95,545 70,581 6,962 2,680 24,047 36,892 25,368 All other................................................................... 6,151 5,911 4,159 714 206 1,156 2,083 1,992 Federal funds sold and securities resale agreements... 35,307 33,225 25,374 1,944 1,239 11,939 10,251 9,933 Commercial banks...................................................... 31,612 29,530 21,780 1,692 « 900 9,379 9,808 9,832 Brokers and dealers.................................................... 2,658 2,658 2,628 82 227 1,956 361 30 Others........................................................................... 1,037 1,037 966 170 112 602 82 72 Other loans..................................................................... 494,104 488,199 390,017 76,484 23,502 147,030 143,001 104,087 Real estate loans......................................................... 126,173 125,914 92,093 7,698 1,260 35,201 47,934 34,079 Secured by farmland............................................... 5,797 5,777 2,599 6 2 340 2,251 3,199 78,752 78,544 58,923 4,174 833 23,742 30,175 19,829 1- to 4-family residences..................................... 71,577 71,387 52,993 2,888 774 20,874 28,457 18,584 6,297 6,250 5,472 261 40 3,065 2,106 824 VA guaranteed................................................. 3,350 3,301 2,851 196 20 1,505 1,130 499 Other................................................................ 61,930 61,836 44,669 2,431 714 16,304 25,221 17,260 Multifamily.......................................................... 7,175 7,157 5,930 1,286 59 2,868 1,717 1,245 FHA insured.................................................... 1,064 1,046 954 179 28 491 256 110 Other................................................................ 6,112 6,110 4,976 1,107 31 2,378 1,461 1,135 Secured by other properties................................... 41,623 41,593 30,572 3,519 425 11,119 15,509 11,052 13,110 11,218 10,784 5,191 954 4,027 612 2,325 33,567 33,418 31,997 11,881 4,509 12,956 2,651 1,570 Loans on securities to brokers and dealers.............. 5,317 5,294 5,176 3,189 794 1,023 170 141 Other loans for purch./carry securities..................... 4,217 4,175 3,533 623 338 1,597 974 684 Loans to farmers........................................................ 18,444 18,423 10,885 140 222 2,622 7,901 7,558 Commercial and industrial loans............................... 177,184 174,304 149,154 39,229 12,907 58,205 38,812 28,030 Loans to individuals................................................... 102,615 102,165 74,285 5,104 1,410 26,254 41,517 28,330 Instalment loans...................................................... 78,947 78,565 56,485 2,874 735 20,051 32,825 22,462 Passenger automobilies....................................... 33,902 33,648 22,953 458 161 7,243 15,091 10,948 Residential-repair/modernize............................. 5,151 5,142 3,788 197 38 1,522 2,030 1,363 Credit cards and related plans........................... 9,458 9,458 8,408 969 299 4,703 2,436 1,050 Charge-account credit cards........................... 7,017 7,016 6,322 689 272 3,541 1,820 694 2,442 2,442 2,086 280 27 1,162 617 356 Other retail consumer goods.............................. 15,364 15,340 10,890 151 111 3,723 6,906 4,474 Mobile homes.................................................. 8,847 8,845 6,399 76 57 2,261 4,004 2,448 Other................................................................ 6,518 6,495 4,492 74 54 1,462 2,902 2,026 Other instalment loans........................................ 15,072 14,977 10,445 1,099 126 2,859 6,362 4,627 Single-payment loans to individuals..................... 23,668 23,600 17,801 2,230 676 6,203 8,692 5,868 All other loans............................................................ 13,479 13,288 12,109 3,428 1,107 5,144 2,430 1,370 Total loans and securities.............................................. 719,173 709,904 550,717 93,621 30,008 203,707 223,381 168,456 Fixed assets—Buildings, furniture, real estate.............. 14,168 14,092 10,808 1,115 431 4,358 4,903 3,360 Investments in subsidiaries not consolidated............... 1,595 1,586 1,568 716 121 674 57 27 Customer acceptances outstanding............................... 6,645 6,500 6,249 3,739 359 1,900 251 396 Other assets..................................................................... 16,688 16,367 14,216 3,539 771 6,537 3,368 2,472 Total assets..................................................................... 884,755 871,986 692,529 138,996 35,906 255,251 262,376 192,227 1 Member banks exclude and nonmember banks include 2 noninsured Note.—Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System, and bank-premises subsidiaries and other significant majority-owned domestic member banks exclude 2 national banks outside the continental United subsidiaries. Figures for total loans and for individual categories of States. securities are reported on a gross basis—that is, before deduction of 2 See table (and notes), Deposits Accumulated for Payment of Personal valuation reserves. Loans, p. 26. Back data in lesser detail were shown in previous Bulletins. Beginning 3 Demand deposits adjusted are demand deposits other than domestic with the fall Call Report, data for future spring and fali iCall Reports will commercial interbank and U.S. Govt., less cash items reported as in be available from the Data Production Section of the Division of Data process of collection. Processing. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 All Insured Non- Account commercialcommercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large Demand deposits............................................................ 302,816 299,114 239,480 60,522 9,014 81,359 88,585 63,337 Mutual savings banks................................................. 1,298 1,186 1,103 472 1 171 459 196 Other individuals, partnerships, and corporations.. 216,285 215,421 165,670 26,762 6,871 61,031 71,006 50,615 U.S. Government........................................................ 8,367 8,355 6,624 882 226 2,893 2,622 1,743 States and political subdivisions................................ 19,379 19,249 14,264 1,346 202 4,076 8,640 5,116 Foreign governments, central banks, etc................... 1,698 1,534 1,514 1,307 17 182 8 185 Commercial banks in United States......................... 34,586 33,562 32,576 18,867 1,335 9,135 3,240 2,010 Banks in foreign countries......................................... 6,131 5,786 5,532 4,332 127 955 118 598 Certified and officers’ checks, etc............................... 15,072 14,020 12,197 6,553 235 2,916 2,493 2,875 Time and savings deposits.............................................. 407,561 404,653 307,881 44,468 16,233 111,622 135,559 99,679 Savings deposits.......................................................... 133,129 132,868 96,488 6,165 2,039 33,834 54,450 36,641 Accumulated for personal loan payments2.............. 460 457 330 63 267 130 Mutual savings banks................................................. 486 465 456 275 32 129 20 30 Other individuals, partnerships, and corporations.. 207,331 206,061 159,052 25,950 10,969 58,285 63,848 48,279 U.S. Government........................................................ 446 446 334 53 31 100 149 111 States and political subdivisions................................ 47,711 47,551 35,192 2,088 1,655 14,963 16,487 12,518 Foreign governments, central banks, etc................... 9,581 8,843 8,668 5,074 874 2,686 33 913 Commercial banks in United States.......................... 7,502 7,301 6,784 4,437 606 1,461 280 718 Banks in foreign countries......................................... 915 661 578 426 27 100 25 338 Total deposits.................................................................. 710,377 703,767 547,361 104,990 25,247 192,980 224,144 163,016 Federal funds purchased and securities sold under agreements to repurchase........................................... 57,064 55,983 53,652 11,115 5,641 28,973 7,922 3,412 Other liabilities for borrowed money........................... 10,483 9,531 9,184 3,665 141 4,193 1,185 1,299 Mortgage indebtedness................................................... 1,192 1,188 1,002 78 5 386 533 189 Bank acceptances outstanding....................................... 6,916 6,761 6,509 3,980 362 1,914 253 407 Other liabilities............................................................... 29,091 25,767 21,338 4,583 2,015 8,053 6,689 7,752 Total liabilities................................................................ 815,123 802,997 639,046 128,411 33,410 236,499 240,726 176,076 Minority interest in consolidated subsidiaries.............. 4 4 1 1 3 Total reserves on loans/securities.................................. 8,005 7,982 6,535 1,449 428 2,428 2,231 1,470 Reserves for bad debts (IRS)..................................... 7,709 7,691 6,347 1,448 427 2,368 2,104 1,362 Other reserves on loans.............................................. 125 125 79 1 1 8 69 47 Reserves on securities................................................. 171 166 110 52 58 61 Total capital accounts.................................................... 61,623 61,003 46,946 9,136 2,068 16,323 19,418 14,677 Capital notes and debentures..................................... 4,310 4,203 3,419 752 57 1,682 929 891 Equity capital.............................................................. 57,313 56,801 43,526 8,384 2,012 14,641 18,490 13,786 Preferred stock........................................................ 64 59 41 18 11 12 23 Common stock........................................................ 14,525 14,423 10,886 2,167 562 3,542 4,614 3,640 Surplus..................................................................... 24,408 24,272 18,655 3,458 1,140 6,705 7,351 5,753 Undivided profits.................................................... 17,398 17,196 13,329 2,737 268 4,130 6,194 4,069 Other capital reserves.............................................. 917 851 616 4 41 253 318 301 Total liabilities, reserves, minority interest, capital accounts....................................................................... 884,755 871,986 692,529 138,996 35,906 255,251 262,376 192,227 Demand deposits adjusted3........................................... 207,657 205,072 149,611 19,051 5,569 50,155 74,837 58,046 Average total deposits (past 15 days)........................... 693,902 687,496 532,535 96,854 24,780 189,299 221,602 161,366 Average total loans (past 15 days)................................ 501,628 493,909 390,178 75,995 23,483 147,258 143,441 111,450 Selected ratios: Percentage of total assets Cash and balances with other banks......................... 14.3 14.2 15.7 26.1 11.7 14.9 11.6 9.1 Total securities held.................................................... 21.4 21.6 19.6 10.9 14.7 17.5 26.7 28.3 Trading account securities...................................... .7 .7 .9 1.6 1.5 1.3 .1 U.S. Treasury...................................................... .1 .1 .1 .4 .2 States and political subdivisions......................... .4 .4 .6 1.2 .7 .7 .1 All other trading account securities................... .2 .2 .2 .4 .4 .4 Bank investment portfolios.................................... 20.7 20.9 18.6 9.4 13.2 16.2 26.6 28.3 U.S. Treasury...................................................... 5.8 5.9 5.1 2.7 3.0 4.3 7.4 8.4 States and political subdivisions......................... 10.8 11.0 10.2 5.0 7.5 9.4 14.1 13.2 All other portfolio securities............................... 4.1 4.1 3.4 1.7 2.7 2.5 5.2 6.7 Other loans and Federal funds sold.......................... 59.8 59.8 60.0 56.4 68,9 62.3 58,4 59.3 All other assets............................................................ 4.4 4.4 4.7 6.6 4.7 5.3 3.3 3.3 Total loans and securities.......................................... 81.3 81.4 79.5 67.4 83.6 79.8 85.1 87.6 Reserves for loans and securities............................... .9 .9 .9 1.0 1.2 1.0 .9 .8 Equity capital—Total................................................. 6.5 6.5 6.3 6.0 5.6 5.7 7.0 7.2 Total capital accounts................................................ 7.0 7.0 6.8 6.6 5.8 6.4 7.4 7.6 Number of banks........................................................... 14,337 14,108 5,761 13 9 156 5,583 8,576 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Real Total mer­ U.S. others Total and cul­ estate cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas. Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1974 Feb. 6.................... 371,407 16,030 14,046 1,340 415 229268,055 109,986 3,739 1,159 5,025 155 2,731 8,106 18,017 55,859 13.................... 370,362 16,725 15,093 1,035 394 203267,640 110,149 3,733 731 4,804 151 2,744 7,911 18,129 55,889 20.................... 371,190 16,659 15,089 984 353 233267,577 110,142 3,732 586 4,986 148 2,740 7,931 18,213 55,942 27.................... 372,059 16,414 14,597 1,216 366 235268,739 110,707 3,744 989 5,271 151 2,743 8,128 18,156 55,905 1975 Jan. 8.................... 407,676 19,534 14,909 2,392 1,459 774300,420 130,244 3,722 2,353 3,496 86 2,533 10,477 21,395 60,061 15.................... 402,933 18,676 14,693 1,865 1,260 858297,329 129.083 3,690 1,216 3,597 86 2,489 10,417 21,381 60,074 22.................... 395,866 17,434 14,389 1,271 840 934293,277 127,873 3,645 550 2,945 84 2,449 10,141 21,047 60,049 29.................... 393,582 17,342 13,847 1,595 987 913292,188 126,850 3,605 898 3,375 82 2,464 9,934 20,823 60,095 Feb. 5 ®.................. 397,028 21,115 17,027 1,929 1,248 911291,973 126,468 3,570 1,467 3,289 82 2,446 10,114 20,898 59,859 12 p............................. 394,403 20,653 16,774 1,802 1,000 1,077289,315 126,072 3,513 585 2,769 83 2,444 9,785 20,775 59,667 19 p.................. 397,374 20,415 16,514 1,729 1,076 1,096291,205 126.083 3,504 1,287 3,443 82 2,470 10,226 20,698 59,751 26 p............................. 391,765 17,735 14,257 1 *555 1,026 897288,849 125,987 3,498 800 2,786 80 2,430 9,731 20,492 59,725 New York City 1974 Feb. 6.................... 79,748 1 ,043 1,012 26 5 63,188 31,558 142 1,047 3,120 47 616 2,637 6,217 6.445 13.................... 78,743 1,067 1,032 26 9 62,572 31,504 138 614 2,861 42 622 2,532 6,219 6,460 20.............. 79,370 1,514 1,455 49 10 62,218 31,380 135 489 2,939 41 613 2,552 6,269 6.445 27.................. 79,661 1,001 999 2 63,137 31,601 136 887 3,240 40 615 2,714 6,146 6,380 1975 Jan. 8.................... 94,211 1,406 1,322 28 38 18 77,323 40,894 126 1,980 2,277 21 534 3,536 8,282 7,514 15................ 93,408 2,506 2,402 62 42 75,986 40,396 126 1,085 2,349 21 507 3,591 8,330 7.508 22................ 90,188 2,067 1,814 93 160 73,681 39,812 125 482 1,868 20 502 3,428 8,207 7,531 29.................. 89,669 1,977 1,774 108 95 73,479 39,477 121 754 2,231 20 499 3,288 8,192 7.509 Feb. 5p................ 88,796 1,065 855 126 84 73,684 39,306 120 946 2,123 18 492 3,498 8,338 7,448 12 p............................. 88,958 1,613 1,308 141 26 138 72,662 39,160 109 517 1,874 17 494 3,332 8,292 7,468 19®................ 91,539 2,444 2,051 136 257 74,173 39,253 117 1,130 2,354 20 498 3,504 8,242 7,455 26 p............................. 88,753 1,311 1,066 128 5 112 72,646 39,175 115 725 1,841 18 482 3,246 8,142 7,447 Outside New York City 1974 Feb. 6.................... 291,659 14,987 13,034 1,314 415 224204,867 78,428 3,597 112 1,905 108 2,115 5,469 11,800 49,414 13.................... 291,619 15,658 14,061 1,009 385 203205,068 78,645 3,595 117 1,943 109 2,122 5,379 11,910 49,429 20.................... 291,820 15,145 13,634 935 353 223205,359 78,762 3,597 97 2,047 107 2.127 5,379 11,944 49,497 27.................... 292,398 15,413 13,598 1,216 366 233205,602 79,106 3,608 102 2,031 111 2.128 5,414 12,010 49,525 1975 Jan. 8................... 313,465 18,128 13,587 2,364 1,421 756223,097 89,350 3,596 373 1,219 65 1,999 6,941 13,113 52,547 15.................... 309,525 16,170 12,291 1,803 1,260 816221,343 88,687 3,564 131 1,248 65 1,982 6,826 13,051 52,566 22................... 305,678 15,367 12,575 1,178 840 774219,596 88,061 3,520 68 1,077 64 1,947 6,713 12,840 52,518 29................... 303,913 15,365 12,073 1,487 987 818218,709 87,373 3,484 144 1,144 62 1,965 6,646 12,631 52,586 Feb. 5p.................. 308,232 20,050 16,172 1,803 1,248 827218,289 87,162 3,450 521 1,166 64 1,954 6,616 12,560 52,411 12 p.................. 305,445 19,040 15,466 1,661 974 939216,653 86,912 3,404 68 895 66 1,950 6,453 12,483 52,199 19®.................. 305,835 17,971 14,463 1,593 1,076 839217,032 86,830 3,387 157 1,089 62 1,972 6,722 12,456 52,296 26®.................. 303,012 16,424 13,191 1,427 1,021 785216,203 86,812 3,383 75 945 62 1,948 6,485 12,350 52,278 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer­ Notes and bonds cial banks maturing— Obligations Other bonds, of States corp. stocks, Wednesday Con­ and and sumer For­ All Certif­ political securities instal­ eign other Total Bills icates Total subdivisions Do­ For­ ment govts. Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Tax Certif. war­ All of All rants 3 other partici­ other 5 pation4 Large banks— Total 1974 3,900 4,843 33,247 1,455 19,833 25,527 5,809 4,690 11,701 3,327 61,795 7,637 40,520 2,454 11,184 ..............Feb. 6 3,597 4,807 33,216 1,490 20,289 25,236 5,635 4,732 11,630 3,239 60,761 7,191 40,108 2,418 11,044 .........................13 3,627 4,705 33,187 1,380 20,258 25,616 4,936 4,252 12,242 4,186 61,338 7,250 40,356 2,434 11,298 .........................20 3,693 4,714 33,214 1,438 19,886 25,329 4,837 4,262 12,111 4,119 61,577 7,178 40,670 2,417 11,312 .........................27 1975 3,372 6,164 35,023 1,555 19,939 25,087 4,780 3,701 12,966 3,640 62,635 6,763 40,817 2,450 12,605 ..............Jan. 8 3,164 6,042 34,950 1.457 19,683 24,512 4,412 3,733 12,842 3,525 62,416 6,737 40,586 2,496 12,597 .........................15 3,207 5,783 34,870 1,428 19,206 23,689 3,759 3,710 12,723 3,497 61,466 6,436 40,110 2,470 12,450 .........................22 3,205 5,485 34,849 1.457 19,066 23,011 3,392 3,614 12,568 3,437 61,041 6,324 40,005 2,477 12,235 .........................29 2,934 5,450 34,726 1,405 19,265 22,752 3,385 3,757 12,326 3,284 61,188 6,273 39,936 2,480 12,499 ..............Feb. 5* 3,166 5.473 34,664 1,436 18,883 23,253 4,138 3,706 12,165 3,244 61,182 6,239 39,994 2,479 12,470 .........................12* 2,892 5,493 34,587 1,471 19,218 24,427 4,057 3,428 13,254 3,688 61,327 6,237 40,061 2,513 12,516 .........................19* 2,866 5.474 34,502 1,439 19,039 24,033 4,046 3,405 13,010 3,572 61,148 6,136 40,113 2,565 12,334 .........................26* New York City 1974 1,514 2,263 2,463 689 4,430 5,128 1,821 700 1,545 1,062 10,389 2,230 5,388 590 2,181 ...............Feb. 6 1,310 2,279 2,483 717 4,791 5,054 1,702 711 1,549 1,092 10,050 2,039 5,286 581 2,144 .........................13 1,289 2,297 2,476 641 4,652 5,250 1,310 553 1,912 1,475 10,388 2,107 5,455 581 2,245 .........................20 1,357 2,370 2,478 714 4,459 5,037 1,271 543 1,851 1,372 10,486 2,130 5,579 572 2,205 .........................27 1975 1,599 3,032 2,636 842 4,050 5,068 800 335 2,692 1,241 10,414 2,023 5,467 522 2,402 ..............Jan. 8 1,525 2,950 2,654 840 4,104 4,700 592 327 2,584 1,197 10,216 1,979 5,383 557 2,297 .........................15 1,544 2,836 2,649 793 3,884 4,607 641 303 2,480 1,183 9,833 1,855 183 538 2,257 .........................22 1,548 2,622 2,648 733 3,837 4,503 602 284 2,450 1,167 9,710 1,772 176 539 2,223 .........................29 1,501 2,652 2,641 692 3,909 4,333 665 321 2,320 1,027 9,714 1,765 5,152 562 2,235 ..............Feb. 5* 1,507 2,704 2,628 701 3,859 4,868 1,259 323 2,295 991 9,815 1,812 5,180 554 2,269 .........................12* 1,484 2,682 2,634 708 4,092 5,205 1,071 361 2,597 1,176 9,717 1,779 5,133 534 2,271 .........................19*> 1,442 2,760 2,612 691 3,950 5,118 1,051 356 2,558 1,153 9,678 1,664 5,173 533 2,308 .........................26* Outside New York City 1974 2,386 2,580 30,784 766 15,403 20,399 3,988 3,990 10,156 2,265 51,406 5,407 35,132 1,864 9,003 ..............Feb. 6 2,287 2,528 30,733 773 15,498 20,182 3,933 4,021 10,081 2,147 50,711 5,152 34,822 1,837 8,900 .........................13 2,338 2,408 30,711 739 15,606 20,366 3,626 3,699 10,330 2,711 50,950 5,143 34,901 1,853 9,053 .......................20 2,336 2,344 30,736 724 15,427 20,292 3,566 3,719 10,260 2,747 51,091 5,048 35,091 1,845 9,107 .......................27 1975 1,773 3,132 32,387 713 15,889 20,019 3,980 3,366 10,274 2,399 52,221 4,740 35,350 1,928 10,203 ..............Jan. 8 1,639 3,092 32,296 617 15,579 19,812 3,820 3.406 10,258 2,328 52,200 4,758 35,203 1,939 10,300 ........................15 1,663 2,947 32,221 635 15,322 19,082 3,118 3.407 10,243 2,314 51,633 4,581 34.927 1,932 10,193 .......................22 1,657 2,863 32,201 724 15,229 18,508 2,790 3,330 10,118 2,270 51,331 4,552 34,829 1,938 10,012 .......................29 1,433 2,798 32,085 713 15,356 18,419 2,720 3,436 10,006 2,257 51,474 4,508 34,784 1,918 10,264 ................Feb. 5* 1,659 2,769 32,036 735 15,024 18,385 2,879 3,383 9,870 2,253 51,367 4,427 34,814 1,925 10,201 .......................12* 1,408 2,811 31,953 763 15,126 19,222 2,986 3,067 10,657 2,512 51,610 4,458 34.928 1,979 10,245 .......................19* 1,424 2,714 31,890 748 15,089 18,915 2,995 3,049 10,452 2,419 51,470 4,472 34,940 2,032 10,026 .......................26* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits ( Demand Cash Invest­ items Re­ Bal­ ments Total Domestic in serves Cur­ ances in sub­ assets/ interbank Wednesday process with rency with sidiar­ Other total States of F.R. and do­ ies not assets liabil­ and collec­ Banks coin mestic consol­ ities Total polit­ tion banks idated IPC ical U.S. sub- Govt. Com­ Mutual divi- mer­ sav­ cial ings Large banks— Total 1974 Feb. 6................... 31,677 21,644 4,016 11,891 1.429 21,188 463.252 157,344 108,003 6,424 4,700 23,545 769 13................... 37,855 24,102 4,366 13,788 1,426 21,354 473.253 163,592 111,108 6,370 3,466 26,603 655 20................... 38,014 23,935 4,467 12,924 1.429 21,605 473,564 162,933 113,261 6,594 2,610 25,572 685 27................... 31,481 21,251 4,459 11,621 1.429 21,708 464,008 155,685 109,164 6,011 3,242 22,786 594 1975 Jan. 8................... 32,438 21,304 5,042 12,048 1,649 31,879 512,036 164,446 117,693 6,409 1,571 24,797 834 15................... 34,809 25,141 4,910 11,711 1,681 32,103 513,288 165,874 118,990 6,474 1,656 23,843 745 22................... 30,355 29,437 4,884 10,846 1,673 32,617 505,678 155,438 112,595 6,108 2,601 21,054 677 29................... 28,271 23,492 4,888 10,781 1,653 32,840 495,507 152,838 110,564 5,999 2,007 20,630 635 Feb. 5*................. 32,332 25,636 4,219 11,278 1,689 33,440 505,622 159,563 113,147 6,396 2,767 22,882 748 12?................. 31,745 25,455 4,643 11,566 1,691 33,207 502,710 153,918 112,549 5,943 1,448 21,153 665 19*................. 36,489 21,411 4.772 11,912 1,705 33,583 507,246 160,690 115,209 6,499 1,566 23,643 628 26*................. 30,463 23,501 4.773 10,850 1,696 33,647 496,695 153,830 112,830 6,222 1,450 20,707 613 New York City 1974 Feb. 6................... 11,692 5,815 486 5,792 656 5,941 110,130 46,027 23,287 322 962 11,984 432 13................... 16,318 7,786 529 7,423 656 5,795 117,250 50,829 23,975 345 608 14,909 332 20.................. 13,391 7,307 511 6,756 660 6,298 114,293 48,138 24,683 386 335 13,047 346 27.................. 11,765 6,021 499 5,512 660 6,224 110,342 45,718 23,782 319 599 11,600 299 1975 Jan. 8................... 10,970 6,357 576 4,813 756 11,145 128,828 46,839 26,020 322 155 12,073 463 15................... 12,906 7,653 568 5,264 758 11,341 131,898 48,942 26,696 410 252 12,347 416 22................... 11,156 9,385 544 4,641 757 11,459 128,130 44,411 25,238 287 489 10,308 475 29................... 10,963 6,189 550 4,662 764 11,747 124,544 44,729 25,164 338 332 10,226 355 Feb. 5*................. 11,561 8,984 502 ,617 763 11,870 127,093 45,821 25,670 393 600 10,747 417 12*................. 11,595 7,825 530 ,209 765 11,603 126,485 43,297 25,163 267 110 9,824 351 19*................. 12,063 6.488 541 ,935 770 12,060 128,396 45,505 25,826 267 115 10,759 302 26*................. 11,256 6.489 524 ,415 770 11,946 124,153 44,698 26,544 365 259 9,769 332 Outside New York City 1974 Feb. 6................... 19,985 15,829 3,530 6,099 773 15,247 353,122 111,317 84,716 6,102 3,738 11,561 337 13................... 21,537 16,316 3,837 6,365 770 15,559 356,003 112,763 87,133 .6,025 2,858 11,694 323 20................... 24,623 16,628 3,956 6,168 769 15,307 359,271 114,795 88,578 6,208 2,275 12,525 339 27................... 19,716 15,230 3,960 6,109 769 15,484 353,666 109,967 85,382 5,692 2,643 11,186 295 1975 Jan. 8................... 21,468 14,947 4,466 7,235 893 20,734 383,208 117,607 91,673 6,087 1,416 12,724 371 15.................. 21,903 17,488 4,342 6,447 923 20,762 381,390 116,932 92,294 6,064 1,404 11,496 329 22................... 19,199 20,052 4,340 6,205 916 21,158 377,548 111,027 87,357 5,821 2,112 10,746 302 29................... 17,308 17,303 4,338 6,119 889 21,093 370,963 108,109 85,400 5,661 1,675 10,404 280 Feb. 5*................ 20,771 16,652 3,717 6,661 926 21,570 378,529 113,742 87,477 6,003 2,167 12,135 331 12*................ 20,150 17,630 4,113 6,357 926 21,604 376,225 110,621 87,386 5,676 1,338 11,329 314 19*................. 24,426 14,923 4,231 6,977 935 21,523 378,850 115,185 89,383 6,232 1,451 12,884 326 26*................ 19,207 17,012 4,249 6,435 926 21,701 372,542 109,132 86,286 5,857 1,191 10,938 281 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Foreign IPC States Fed­ Wednesday Certi­ and Do- eral Other fied polit­ mes- For­ funds liabili­ and Total6 ical tic eign pur­ F.R. ties, Com­ offi­ sub- inter­ govts.2 chased, Banks Others etc.8 Govts., mer­ cers’ Sav­ Other divi- bank etc.7 etc. 2 cial checks ings banks Large banks— Total 1974 1,552 4,160 8,191 192,627 56,911 98,488 23,521 5,136 7,988 52,448 592 5,508 17,564 ...................Feb. 6 1,139 4,351 9,900 192,602 56,955 98,607 23,362 4,971 8,106 54,016 2,262 5,376 18,211 ............................13 1,313 4,831 8,067 192,450 57,055 98,446 23,349 4,.--- 8,073 56,828 840 5,078 18,301 ............................20 1,224 4,481 8,183 192,829 57,145 99,016 23,460 4,654 7,906 53,885 940 5,353 18,213 ...........................27 1975 1,415 5,397 6,330 228,213 58,672 122,054 25,627 8,260 11,541 51,889 17 4,053 23,845 .................Jan. 8 1,369 5,535 7,262 227,145 58,606 121,422 25,243 8,192 11,498 48,885 2,771 4,126 24,908 ............................15 1.315 4,968 6,120 227,222 58,658 120,883 25,301 8,651 11,646 52,805 2,271 4,102 24,221 ...........................22 1.316 5,200 6,487 226,719 58,740 120,966 25,099 8,260 11,581 48,421 46 4,012 23,762 ...........................29 1,270 4,927 7,426 225,582 58,977 120,105 24,979 7,841 11,597 52,935 3,804 23,734 ...................Feb. 5*> 1,291 5,119 5,750 225,927 59,217 120,370 25,318 7,266 11,706 55,493 34 3,765 23,528 ...........................12* 1,116 5,018 7,011 224,305 59,474 118,898 25,194 7,055 11,716 53,982 1,053 3,625 23,622 ..............................I9p 1,233 4,975 5,800 224,192 59,687 118,512 25,323 7,136 11,613 50,847 759 3,664 23,416 ............................26p New York City 1974 1,345 3,078 4,617 35,145 5,010 20,932 1,798 3,255 4,067 11,436 2,427 5,488 ...................Feb. 6 924 3,244 6,492 34,851 5,015 20,800 1,680 3,166 4,099 12,859 642 2,398 6,055 ............................13 1,079 3,588 4,674 34,561 5,026 20,705 1,590 3,106 4,015 13,957 2,172 5,865 ............................20 995 3,347 4,777 34,437 5,035 20,792 1,648 2,907 3,938 12,535 2,287 5,759 ............................27 1975 1,092 3,988 2,726 49,187 5,082 29,402 1,651 4,409 7.167 12,750 1,385 8,261 .................Jan. 8 1,112 4,093 3,616 48,636 5,090 28,966 1,599 4,314 7,120 11,341 1,440 1,566 9,580 ............................15 1,102 3,691 2,921 48,216 5,095 28,680 1,536 4,302 7,075 13,712 1,445 1,562 8,384 ............................22 1,109 3,785 3,420 48,060 5,101 28,567 1,524 4,181 7.168 11,653 1,526 8,160 ............................29 998 3,636 3,360 47,194 5,146 28,079 1,412 3,905 7,127 13,858 1,415 8,248 ...................Feb. 5p 1,055 3,761 2,766 47,111 5,192 28,280 1,467 3,511 7,143 16,013 1,425 8,072 ...........................12 p 897 3,696 3,643 46,849 5,205 27,934 1,473 3,546 7,218 14,979 981 1,358 8,163 ............................19 p 1,022 3,668 2,739 46,921 5,240 27,945 1 ,500 3,611 7.168 12,582 1,355 8,033 ...........................26* Outside New York City 1974 207 1,082 3,574 157,482 51,901 77,556 21,723 1,881 3,921 41,012 592 3,081 12,076 ...................Feb. 6 215 1,107 3,408 157,751 51,940 77,807 21,682 1,805 4,007 41,157 1,620 2,978 12,156 ...........................13 234 1,243 3,393 157,889 52,029 77,741 21,759 1,792 4,058 42,871 840 2,906 12,436 ............................20 229 1,134 3,406 158,392 52,110 78,224 21,812 1,747 3,968 41,350 940 3,066 12,454 ............................27 1975 323 1,409 3,604 179,026 53,590 92,652 23,976 3,851 4,374 39,139 17 2,668 15,584 .................Jan. 8 257 1,442 3,646 178,509 53,516 92,456 23,644 3,878 4,378 37,544 1,331 2,560 15,328 ............................15 213 1,277 3,199 179,006 53,563 92,203 23,765 4,349 4,571 39,093 826 2,540 15,837 ...........................22 207 1,415 3,067 178,659 53,639 92,399 23,575 4,079 4,413 36,768 46 2,486 15,602 ...........................29 272 1,291 4,066 178,388 53,831 92,026 23,567 3,936 4,470 39,077 2,389 15,486 ...................Feb. 5p 236 1,358 2,984 178,816 54,025 92,090 23,851 3,755 4,563 39,480 34 2,340 15,456 ...........................12* 219 1,322 3,368 177,456 54,269 90,964 23,721 3,509 4,498 39,003 72 2,267 15,459 ...........................19 p 211 1,307 3,061 177,271 54,447 90,567 23,823 3,525 4,445 38,265 759 2,309 15,383 ...........................26 p For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS o MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Reserves Memoranda for— Large negotiable Gross Total time CD’s All other large liabili­ Total loans included in time time deposits12 ties of Wednesday capital Total and De­ and savings deposits11 banks Secur­ ac­ loans invest­ mand to Loans ities counts (gross) ments deposits their ad­ (gross) ad­ Issued Issued Issued Issued foreign justed9 ad­ justed 10 Total to to Total to to branches justed9 IPC’s others IPC’s others Large banks— Total 191A Feb. 6................... 4,968 32,123 266,139 353,461 97,422 66,215 45,058 21,157 1,659 13................... 4,966 32,155 265,675 351,672 95,668 66,157 45,076 21,081 2,218 20................... 4,964 32,097 265,520 352,474 96,737 65,680 44,752 20,928 1,735 27................... 4,976 32,049 266,863 353,769 98,176 65,753 45,056 20,697 1,689 1975 Jan. 8................... 5,273 34,238 301,673 389,395 105,640 92,674 64,248 28,426 37,593 20,828 16,765 2,822 15................... 5,310 34,208 298,148 385,076 105,566 91,852 63,491 28,361 37,463 20,720 16,743 3,453 22................... 5,434 34,112 293,115 378,270 101,428 91,859 63,003 28,856 37,568 20,810 16,758 2,583 29................... 5,448 34,201 292,478 376,530 101,930 91,473 62,792 28,681 37,308 20,765 16,543 2,066 Feb. 5*................. 5.560 34,375 293,127 377,067 101,582 90,185 62,012 28,173 37,058 20,600 16,458 2,230 12*................. 5.561 34,424 290,028 374,463 99,572 90,083 62,309 27,774 36,963 20,321 16,642 1,937 19*.................. 5,554 34,355 292,214 377,968 98,992 88,459 60,933 27,526 36,556 20,066 16,490 1,868 26*................. 5,568 34,359 289,461 374,642 101,210 87,790 60,358 27,432 36,910 20,168 16,742 1,870 New York City 1974 Feb. 6................... 1.360 8,247 61,705 77,222 21,389 21,016 14,034 6,982 1,220 13................... 1.361 8,255 61,297 76,401 18,994 20,853 13,985 6,868 1,817 20................... 1,357 8,243 60,988 76,626 21,365 20,541 13,867 6,674 1,419 27................... 1,370 8,236 61,782 77,305 21,754 20,362 13,866 6,496 1,240 1975 Jan. 8.................... 1,487 8,919 75, i 91,290 23,641 32,161 21,497 10,664 9,466 5,644 3,822 1,268 15................... 1,485 8,908 74,565 89,481 23,437 31,524 21,014 10,510 9,546 5,675 3,871 2,124 22................... 1,524 8,876 72,390 86,830 22,458 31,218 20,827 10,391 9,407 5,560 3,847 1,323 29................... 1,520 8,896 72,134 86,347 23,208 31,106 20,703 10,403 9,386 5,582 3,804 1,080 Feb. 5*.................. 1,570 8.987 72,393 86,440 22,913 30,275 20,290 9,985 9,340 5,578 3,762 1,251 12*................. 1.579 8.988 71,460 86,143 21,678 30,179 20,488 9,691 9,239 5,484 3,755 1.236 19*................. 1,582 8,979 73,082 88,004 22,568 30,036 20,234 9,802 9,146 5,462 3,684 1.236 26*................. 1.580 8,984 71,449 86,245 23,414 30,139 20,250 9,889 9,027 5,371 3,656 1,008 Outside New York City 1974 Feb. 6................... 3,608 23,876 204,434 276,239 76,033 45,199 31,024 14,175 439 13................... 3.605 23,900 204,378 275,271 76,674 45,304 31,091 14,213 401 20................... 3,607 23,854 204,532 275,848 75,372 45,139 30,885 14,254 316 27................... 3.606 23,813 205,081 276,464 76,422 45,391 31,190 14,201 449 1975 Jan. 8................... 3,786 25,319 225,865 298,105 81,999 60,513 42,751 17,762 28,127 15,184 12,943 1,554 15................... 3,825 25,300 223,583 295,595 82,129 60,328 42,477 17,851 27,917 15,045 12,872 1,329 22................... 3,910 25,236 220,725 291,440 78,970 60,641 42,176 18,465 28,161 15,250 12,911 1,260 29................... 3,928 25,305 220,344 290,183 78,722 60,367 42,089 18,278 27,922 15,183 12,739 986 Feb. 5*................. 3,990 25,388 220,734 290,627 78,669 59,910 41,722 18,188 27,718 15,022 12,696 979 12*................. 3,982 25,436 218,568 288,320 77,804 59,904 41,821 18,083 27,724 14,837 12,887 701 19*................. 3,972 25,376 219,132 289,964 76,424 58,423 40,699 17,724 27,410 14,604 12,806 632 26*................. 3,988 25,375 218,012 288,397 77,796 57,651 40,108 17,543 27,883 14,797 13,086 862 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stocks. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. 12 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD’s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 o BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1975 1974 1975 1974 1974 Feb. Feb. Feb. Feb. Jan. 2nd 1st 26 19 12 5 29 Feb. Jan. Dec. IV III half half Durable goods manufacturing: Primary metals................................. 1,970 1,937 1,983 1,965 1.962 -43 70 77 63 -23 140 56 Machinery......................................... 8,312 8,315 8,291 8,252 8,312 -429 -83 -127 349 779 222 1,848 Transportation equipment.............. 3,943 3,869 3,906 3,846 3.822 121 10 333 365 340 229 705 587 Other fabricated metal products... 2,837 2,864 2,842 2,835 2,844 -7 -67 -14 -178 253 236 75 503 Other durable goods........................ 4,538 4,534 4,508 4,528 4,602 -64 -257 -176 -265 512 560 247 909 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,975 4,075 4,208 4,323 4,269 -294 -652 357 484 500 -344 984 -220 Textiles, apparel, and leather.......... 3,309 3,289 3,285 3,256 3,220 89 -290 -336 -725 107 339 -618 909 Petroleum refining........................... 2,172 2,116 2,153 2,231 2,237 -65 -13 318 473 494 67 967 -108 Chemicals and rubber..................... 3,366 3,377 3,321 3,300 3,283 83 -99 92 -55 311 355 256 610 Other nondurable goods................. 2,162 2,200 2,197 2,245 2,388 -226 -118 55 -135 158 222 23 338 Mining, including crude petroleum and natural gas........................... 4,775 4,761 4,741 4,774 4.823 -48 -214 235 556 290 75 846 387 Trade: Commodity dealers................. 1,613 1,591 1,598 1,644 1,713 -100 -364 -58 703 -195 -630 508 -273 Other wholesale....................... 6,090 6,121 6,141 6,165 6,201 -111 -527 163 349 135 364 484 829 Retail........................................ 6,378 6,388 6,377 6,364 6,500 -122 -207 -598 -246 -219 557 -465 1,099 Transportation..................................... 6,202 6,178 6,145 6,153 6,202 -184 298 261 22 34 283 139 Communication................................... 2,249 2,262 2,306 2,317 2,286 ’ -37 -213 279 90 -92 326 -2 475 Other public utilities........................... 7,636 7,791 7,793 7,845 7,898 -262 -720 573 609 1,088 1,335 1,697 1,044 Construction......................................... 5,640 5,666 5,695 5,642 5,675 -35 -427 -297 -276 231 623 -45 594 Services.................................................. 11,487 11,485 11,480 11,563 11,613 -126 -341 144 171 133 405 304 594 All other domestic loans..................... 9,744 9,821 9,774 9,869 9.962 -218 -157 150 374 357 576 731 1,117 Bankers’ acceptances........................... 2,399 2,321 2,097 2,025 1,859 540 198 19 309 -365 381 -56 443 Foreign commercial and industrial loans.............................................. 4,406 4,368 4,323 4,392 4,294 112 67 -41 -249 -208 506 -457 611 Total classified loans........................... 105,203105,329 105,164105,534105,965 -762 -5,047 1,483 2,565 4,264 6,972 6,829 12,491 Comm, paper included in total class, loans 1............................................ 428 Total commercial and industrial loans of large commercial banks.......... 125,987 126,083 126,468126,850 -863 -4,443 1,692 2,886 4,795 7,659 7,681 13,491 For notes see table below. “TERM" COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1975 1974 1974 Industry Dec. Feb. Jan. 31 Nov. Oct. Sept. Aug. July June 2nd 26 29 (Tues.) 27 30 25 28 31 26 IV III II I half Durable goods manufactur­ ing: Primary metals................... 1,237 1,249 1,210 1,176 1,107 1,133 1,104 1,116 1,105 77 28 41 -40 105 Machinery.......................... 4,117 4,138 4,151 4,049 3,970 3,896 3,789 3,572 3,286 255 610 172 248 865 Transportation equipment. 1,713 1,737 1,681 1,586 1,570 1,535 1,419 1,373 1,410 146 125 45 81 271 Other fabricated metal products......................... 1,326 1,246 1,195 1,113 1,093 1,066 1,000 996 954 129 112 43 17 241 Other durable goods.......... 2,269 2,301 2,431 2,361 2,339 2,268 2,198 2,169 2,107 163 161 192 143 324 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,620 1,707 1,768 1,674 1,661 1,649 1,604 1,604 1,571 119 78 42 38 197 Textiles, apparel, and leather............................. 1,086 1,124 1,144 1,179 1,187 1,151 1,171 1,182 1,128 -7 23 39 86 16 Petroleum refining............. 1,458 1,542 1,518 1,272 1,208 1,097 1,048 996 963 421 134 18 12 555 Chemicals and rubber....... 1,812 1,839 1,883 1,818 1,820 1,778 1,790 1,760 1,737 105 41 134 42 146 Other nondurable goods.. 1,136 1,227 1,265 1,170 1,187 1,204 1,189 1,149 1,171 61 33 32 57 94 Mining, including crude pe­ troleum and natural gas. 3,448 3,449 3,b97 3,620 3,468 3,339 3,319 3,197 3,130 358 209 -115 287 567 Trade: Commodity dealers.. 153 169 155 171 157 139 166 155 141 16 -2 1 13 14 Other wholesale........ 1,420 1,469 1,491 1,431 1,488 1,449 1,419 1,446 1,406 42 43 83 133 85 Retail......................... 2,296 2,379 2,598 2,602 2,578 2,527 2,529 2,512 2,428 71 99 -52 274 170 Transportation....................... 4,509 4,455 4,555 4,379 4,370 4,349 4,322 4,353 4,425 206 -76 8 97 130 Communication..................... 1,152 1,161 1,120 1,076 1,047 1,029 1,021 1,030 1,030 91 -1 64 106 90 Other public utilities............. 3,870 3,885 3,966 3,987 3,810 3,672 3,664 3,539 3,443 294 229 289 -98 523 Construction.......................... 2,193 2,224 2,309 2,281 2,237 2,272 2,218 2,183 2,130 37 142 232 -7 179 Services................................... 5,393 5,327 5,509 5,417 5,340 5,350 5,301 5,275 5,273 159 77 197 27 236 All other domestic loans .... 3,144 3,045 3,191 3,255 3,215 3,122 3,074 3,058 3,017 69 105 209 206 174 Foreign commercial and in­ dustrial loans.................. 2,544 2,524 2,445 2,473 2,487 2,401 2,500 2,565 2,548 44 -147 198 16 -103 Total loans............................. 47,896 48,197 49,282 48,090 47,339 46,426 45,845 45,230 44,403 2,856 2,023 1,872 1,738 4,879 1 New item to be reported as of the last Wednesday of each month. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Note.—About 160 weekly reporting banks are included in this series; Commercial and industrial “term” loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 DEMAND DEPOSIT OWNERSHIP □ MARCH 1975 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................ 18.3 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 Sept................................................................................. 17.9 91.5 57.5 1.2 9.7 177.9 Dec................................................................................. 18.5 98.4 58.6 1.3 10.7 187.5 1972—June............................................................................... 17.9 97.6 60.5 1.4 11.0 188.4 Sept................................................................................ 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 June................................................................................ 18.6 106.6 67.3 2.0 11.8 206.3 Sept................................................................................. 18.8 108.3 69.1 2.1 11.9 210.3 Dec................................................................................. 19.1 116.2 70.1 2.4 12.4 220.1 1974—Mar................................................................................ 18.9 108.4 70.6 2.3 11.0 211.2 June................................................................................ 18.2 112.1 71.4 2.2 11.1 215.0 Sept................................................................................. 17.9 113.9 72.0 2.1 10.9 216.8 Dec.®.............................................................................. 19.1 119.2 73.8 2.3 11.9 226.3 Weekly reporting banks: 1971—Dec................................................................................. 14.4 58.6 24.6 1.2 5.9 104.8 1972—Dec................................................................................. 14.7 64.4 27.1 1.4 6.6 114.3 1973—Dec................................................................................. 14.9 66.2 28.0 2.2 6.8 118.1 1974—Feb................................................................................. 14.1 62.1 26.9 2.3 6.2 111.5 Mar................................................................................. 14.7 61.5 27.6 2.1 6.3 112.1 Apr................................................................................. 14.7 62.2 29.6 2.1 6.2 114.7 May................................................................................ 14.2 62.3 28.0 2.1 6.1 112.7 June................................................................................ 14.1 63.4 28.1 2.0 6.3 113.9 July................................................................................. 14.4 63.5 28.5 2.1 6.5 115.1 Aug................................................................................. 14.1 62.6 28.0 1.9 5.8 112.5 Sept................................................................................. 13.9 64.4 28.4 2.0 6.3 115.0 Oct.................................................................................. 14.7 64.6 28.2 2.0 6.4 115.8 14.6 65.9 28.5 2.1 6.5 117.7 14.9 66.8 29.0 2.3 6.8 119.8 1975—Jan.®............................................................................... 14.7 65.5 29.3 2.3 6.7 118.4 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Oct. 15, Class of Dec. 31, Dec. 31, June 30, Oct. 15, bank 1972 1973 1974 1974 bank 1972 1973 1974 1974 All commercial.......................... 559 507 460 All member—Cont. Insured................................... 554 503 457 407 Other large banks 1........... 69 58 63 66 National member.................. 311 288 265 247 All other member 1............ 313 294 267 220 State member...................... 71 64 65 39 All nonmember......... 177 155 130 All member.......................... 381 352 330 286 172 152 127 121 Noninsured......................... 5 3 3 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on pp. A-16; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-20-A-24 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-15. But they are included in the figures for “Time de­ posits” and “Loans” for call dates as shown on pp. A-16-A-19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 27 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 Bytype of loaia Date Total Commercial Real All and estate other industrial 1974—Nov. 6......................... 5,168 2,756 182 2,230 13......................... 5,169 2,786 182 2,201 20......................... 5,077 2,779 186 2,112 27......................... 4,920 2,740 186 1,994 Dec. 4......................... 4,775 2,568 178 2,029 11......................... 4,765 2,592 182 1,991 18......................... 4,837 2,678 182 1,977 25......................... 4,901 2,821 180 1,900 1975—Jan. 1........................ 4,809 2,746 182 1,881 8......................... 4,641 2,679 184 1,778 1 To bank’s own foreign branches, nonconsolidated non­ 15......................... 4,663 2,703 181 1,779 bank affiliates of the bank, the bank’s holding company (if 22......................... 4,664 2,691 181 1,792 not a bank), and nonconsolidated nonbank subsidiaries of 29 r....................... 4,642 2,724 181 1,737 the holding company. Note.—Series changed on Aug. 28,1974. For a comparison Feb. 5......................... 4,475 2,630 181 1,664 of the old and new data for that date, see p. 741 of the Oct. 12......................... 4,609 2,755 175 1,679 1974 Bulletin. Revised figures received since Oct. 1974 19......................... 4,510 2,661 174 1,675 that affect that comparison are shown in note 2 to this table 26......................... 4,468 2,630 179 1 ,659 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comoanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed3 placed Total Own Bills Own eign United United bills bought acct. corr. States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970........... 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971........... 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972........... 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973-Dec... 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974-Jan... 45,491 6,367 29,353 9,771 1,960 3,541 9,101 2,706 2,251 454 68 589 5,738 2,334 3,492 3,275 Feb... 47,164 7,201 29,169 10,794 1,923 3,606 9,364 2,854 2,328 525 69 592 5,850 2,434 3,182 3,748 Mar... 44,690 6,571 28,869 9,250 2,137 3,908 10,166 2,986 2,413 573 296 684 6,200 2,827 2,979 4,361 Apr... 44,677 6,228 28,752 9,697 2,270 4,564 10,692 3,232 2,744 488 216 700 6,544 2,900 2,833 4,959 May.. 46,171 5,699 30,426 10,046 1,978 5,106 11,727 3,089 2,642 447 373 732 7,532 2,952 2,899 5,876 June.. 44,846 4,970 29,908 9,968 1,579 5,373 13,174 3,535 3,066 469 304 795 8,540 3,287 3,219 6,668 July.. 45,561 4,655 30,344 10,562 1,465 5,585 15,686 3,499 2,983 516 218 1,023 10,947 3,589 3,774 8,323 Aug... 47,967 5,308 31,774 10,885 2,425 6,350 16,167 3,388 2,866 522 277 1,202 11,300 3,585 3,933 8,649 Sept.. 49,087 5,333 31,095 12,659 2,185 6,446 16,035 3,347 2,942 405 504 1,459 10,724 3,526 3,806 8,703 Oct... 51,754 5,242 32,509 14,003 2,046 6,408 16,882 3,291 2,872 419 218 2,037 11,335 3,793 3,759 9,330 Nov.. 51,883 4,860 32,491 14,532 1,947 6,697 *•17,553 3,789 3,290 499 611 1,702 '•11,452 3,810 3,709 ’-10,035 Dec.. 49,070 4,611 31,765 12,694 1,874 6,444 18,484 4,226 3,685 542 999 981 12,278 4,023 4,067 10,394 1 Financial companies are institutions engaged primarily in activities 3 As reported by financial companies that place their paper directly such as, but not limited to, commercial, savings, and mortgage banking; with investors. sales, personal, and mortgage financing; factoring, finance leasing, and 4 Nonfinancial companies include public utilities and firms engaged other business lending; insurance underwriting; and other investment primarily in activities such as communications, construction, manufac­ activities. turing, mining, wholesale and retail trade, transportation, and services. 2 As reported by dealers; includes all financial company paper sold in 5 Included in dealer- and directly-placed financial company columns. the open market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 INTEREST RATES □ MARCH 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1974—Apr. 11 934-98/10- 1974—June 3. 11V4«-11«/io-1974—Oct. 28, 1034-11- 1975—Feb. 3 834-9-914■- 10b H34 11%«- 9%-934 15 IOb-IOVio- 7. 1114-II %■- 11% 4, 83^-9-914b 10% ll«/io 10 834-9b 19, 10-IO1/10- 10, 11%- Nov. 4 1034-1 1b- 18 8%-834b-9 10%. 21, 1114-11%b II1/4 24 8%b-83/4 24, 11%.-1134 11 10%-1034- Apr. 23. 10%B-10VlO 11a Mar. 3 814-8% b 24. 10%B- 25, 11%B-11% 14 10%-1034b 10*1x0- 118/10 11 10% 26, 11%-11%B- 18 10-10%- 25. 1014-104/10- 118/10 1034b 101/2- 28, liy4m-ll*lu 19, 10-1014- 26. 104/10- 10%- IOI/2 ■- July 3 liy4»-U*lio- 1034b 1034-11 12 25, 10-1014- 30. 10%B- 5 11*/10-12b 10%B IO6/10- 9 12b-1214 1034-11 23 1034-1 2b- Dec. 2, 934-10-1014 1214 — 10%B May 2. lOi/i-lOVio- 1034 B-ll Aug. 20 1034-12b 1975—Jan. 9, 91/2-10- 3. 106/1O-1034. 1014 b- -11 Sept. 26 1034-11%- 10% 6. 106/lfr-1034- 1134-12B 13, 91/2-934-10- 11m 101/4B 7. 11a Oct. 7. 1034-1 ll/i­ 15 91/2-934- 10. 11-l li4« ll % b-12 1 Ob-1 014 13. 1114 *-114/10 15, IO34-H14- 20 9%-934 B-10 17. lli4-ll-4/io 11%- 28 9%b-934-10 -111/2* H34» 29 9%b-934 20. 11%b-ii% 21, 1034-1114- !!%■ 113/4 Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime rate keyed to money market variables, b denotes the predominant prime rate,” this table shows only the “large-business prime rate,” which is the rate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 Short-term 35 centers..................................... 11.64 12.40 11.81 11.74 12.04 12.34 11.97 12.60 11.80 12.49 11.44 12.34 New York City........................ 11.35 12.38 12.31 12.14 12.11 12.82 12.05 12.85 11.56 12.35 11.21 12.32 7 Other Northeast................... 12.22 13.17 13.03 13.07 12.84 13.20 12.46 13.34 12.34 13.29 11.91 13.05 8 North Central....................... 11.66 12.36 11.54 11.25 11.99 12.42 11.93 12.68 11.77 12.49 11.53 12.25 7 Southeast............................... 11.52 11.85 11.44 11.41 11.34 11.60 11.43 11.84 11.62 11.84 11.62 12.00 8 Southwest.............................. 11.56 11.95 10.87 10.83 11.64 11.62 11.77 12.02 11.74 12.15 11.36 11.99 4 West Coast............................ 11.48 12.15 12.26 12.38 11.99 12.29 11.86 12.30 11.56 12.33 11.32 12.07 Revolving credit 35 centers..................................... 11.60 12.46 12.71 12.06 12.00 12.45 11.99 12.47 11.60 12.35 11.56 12.48 New York City........................ 11.60 12.48 12.25 12.72 11.97 12.49 11.89 12.60 11.77 12.58 11.57 12.46 7 Other Northeast................... 12.26 12.38 12.08 13.60 11.98 12.86 11.68 12.04 11.75 11.57 12.50 12.49 8 North Central....................... 11.82 12.72 13.34 12.38 12.29 12.31 12.57 12.45 11.79 12.06 11.72 12.87 7 Southeast............................... 11.53 12.44 9.54 11.41 11.42 13.09 11.03 10.98 11.74 11.25 13.27 8 Southwest.............................. 12.06 12.81 i 3.03 12.74 12.33 12.43 12.28 13.03 11.82 12.57 12.06 12.88 4 West Coast............................ 11.39 12.35 12.70 12.69 11.89 12.60 11.68 12.53 11.57 12.49 11.33 12.31 Long-term 35 centers..................................... 12.16 13.08 11.74 11.76 12.04 12.03 12.09 12.30 11.71 12.59 12.23 13.03 New York City........................ 11.96 13.65 8.87 10.43 11.45 12.56 12.37 12.72 12.02 12.26 11.93 13.81 7 Other Northeast................... 12.35 12.74 12.66 12.70 12.52 11.83 11.98 12.60 11.55 12.20 12.61 13.01 8 North Central....................... 12.29 13.12 10.90 11.27 11.89 11.47 11.90 12.27 11.75 12.70 12.44 13.40 7 Southeast............................... 13.81 10.27 11.21 11.05 11.45 10.83 12.14 11.69 12.02 11.06 17.29 8.30 8 Southwest.............................. 12.27 13.43 12.39 12.09 12.18 12.84 12.28 12.06 12.68 12.41 12.49 14.22 4 West Coast............................ 12.01 12.41 12.75 11.38 11.99 13.09 12.04 11.82 11.60 13.43 12.06 12.32 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities5 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers eral 3-month bills6 6-month bills6 9-to 12-month issues Period placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days 3 Rate Market Rate Market 1-year issues 7 days months months2 on new yield on new yield bill (mar­ Other 7 issue issue ket yield)6 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1974. 10.05 9.87 8.62 9.92 10.51 7.886 7.84 7.926 7.95 7.71 8.25 7.81 1974—Feb.. 8.00 7.83 7.40 7.83 8.97 7.060 7.12 6.874 6.96 6.51 6.93 6.77 Mar.. 8.64 8.42 7.76 8.43 9.35 7.986 7.96 7.829 7.83 7.34 7.86 7.33 Apr.. 9.92 9.79 8.43 9.61 10.51 8.229 8.33 8.171 8.32 8.08 8.66 7.99 May. 10.82 10.62 8.94 10.68 11.31 8.430 8.23 8.496 8.40 8.21 8.78 8.24 June. 11.18 10.96 9.00 10.79 11.93 8.145 7.90 8.232 8.12 8.16 8.71 8.14 July.. 11.93 11.72 9.00 11.88 12.92 7.752 7.55 8.028 7.94 8.04 8.89 8.39 Aug.. 11.79 11.65 9.31 12.08 12.01 8.744 8.96 8.853 9.11 8.88 9.54 8.64 Sept.. 11.36 11.23 9.41 11.06 11.34 8.363 8.06 8.599 8.53 8.52 8.95 8.38 Oct.. 9.55 9.36 9.03 9.34 10.06 7.244 7.46 7.559 7.74 7.59 8.04 7.98 Nov.. 8.95 8.81 8.50 9.03 9.45 7.585 7.47 7.551 7.52 7.29 7.67 7.65 Dec.. 9.18 8.98 8.50 9.19 8.53 7.179 7.15 7.091 7.11 6.79 7.33 7.22 1975—Jan... 7.39 7.30 7.31 7.54 7.13 6.493 6.26 6.525 6.36 6.27 6.74 7.29 Feb.. 6.36 6.33 6.24 6.35 6.24 5.583 5.50 5.674 5.62 5.56 5.97 6.85 Week ending— 1974—Nov. 2., 8.95 8.83 8.53 8.95 9.72 7.892 7.95 7.766 7.86 7.51 8.02 7.98 9.. 9.00 8.88 8.50 8.83 9.63 7.880 7.66 7.857 7.65 7.38 7.81 7.83 16.. 8.94 8.81 8.50 8.93 9.37 7.604 7.26 7.552 7.39 7.29 7.63 7.67 23.. 8.88 8.73 8.50 9.00 9.34 7.528 7.46 7.427 7.42 7.19 7.55 7.53 30.. 9.00 8.81 8.50 9.41 9.46 7.328 7.45 7.369 7.57 7.26 7.62 7.50 Dec. 7., 9.23 9.05 8.50 9.55 9.02 7.524 7.44 7.564 7.34 7.15 7.65 7.46 14.. 8.95 8.78 8.50 9.03 8.86 7.172 7.24 6.911 7.04 6.79 7.26 7.16 21.. 9.20 9.00 8.50 9.03 8.72 7.058 6.92 6.858 6.99 6.56 7.16 7.06 28.. 9.28 9.06 8.50 9.16 8.45 6.963 7.01 7.032 7.11 6.67 7.26 7.17 1975—Jan. 4.. 9.13 8.84 8.47 9.08 7.35 7.113 6.96 7.101 6.99 6.70 7.17 7.26 11.. 7.95 7.83 7.98 8.33 7.70 6.698 6.59 6.682 6.64 6.45 6.91 7.23 18.. 7.63 7.53 7.65 7.66 7.22 6.678 6.54 6.646 6.54 6.44 6.95 7.32 25.. 6.85 6.85 6.78 7.03 7.17 6.369 5.98 6.373 6.14 6.15 6.66 7.36 Feb. 1.. 6.55 6.48 6.38 6.59 6.99 5.606 5.68 5.825 5.92 5.87 6.31 7.23 8.. 6.50 6.45 6.25 6.34 6.46 5.669 5.61 5.736 5.65 5.51 5.95 6.91 15.. 6.38 6.34 6.25 6.47 6.28 5.800 5.65 5.800 5.70 5.60 6.06 6.92 22.. 6.31 6.28 6.25 6.26 6.29 5.408 5.25 5.483 5.43 5.44 5.84 6.71 Mar. 1.. 6.25 6.25 6.24 6.35 6.15 5.455 5.47 5.675 5.66 5.67 6.04 6.83 1 Averages of the most representative daily offering rate quoted by of transactions at these rates. For earlier statement weeks, the averages dealers. were based on the daily effective rate—the rate considered most repre­ 2 Averages of the most representative daily offering rate published by sentative of the day’s transactions, usually the one at which most trans­ finance companies, for varying maturities in the 90-179 day range. actions occurred. 3 Beginning Aug. 15, 1974., the rate is the average of the midpoint of 5 Except for new bill issues, yields are averages computed from daily the range of daily dealer closing rates offered for domestic issues; prior closing bid prices. data are averages of the most representative daily offering rate quoted by 6 Bills quoted on bank-discount-rate basis. dealers. 7 Selected note and bond issues. 4 Seven-day averages for week ending Wednesday. Beginning with statement week ending July 25, 1973, weekly averages are based on the Note.—Figures for Treasury bills are the revised series described on p. daily average of the range of rates on a given day weighted by the volume A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 INTEREST RATES □ MARCH 1975 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings / rating group price ratio price ratio Period United Total l States ( t l e o r n m g ) ­ Total i Baa New ce R n e t ­ ly Aaa Baa In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 1974—Fe b 6.54 5.25 5.05 5.49 8.12 8.23 8.17 7.85 8.59 8.01 8.27 8.33 7.47 3.81 Mar........ 6.81 5.44 5.20 5.71 8.46 8.44 8.27 8.01 8.65 8.12 8.35 8.44 7.56 3.65 8.96 Apr......... 7.04 5.76 5.45 6.06 8.99 8.95 8.50 8.25 8.88 8.39 8.51 8.68 7.83 3.86 May. . .. 7.07 6.06 5.89 6.30 9.24 9.13 8.68 8.37 9.10 8.55 8.73 8.86 8.11 4.00 June 7.03 6.17 5.95 6.41 9.38 9.40 8.85 8.47 9.34 8.69 8.89 9.08 8.25 4.02 10.30 July........ 7.18 6.70 6.34 7.10 10.20 tO. 04 9.10 8.72 9.55 8.95 9.08 9.35 8.40 4.42 Aug........ 7.33 6.70 6.38 7.10 10.07 10.19 9.36 9.00 9.77 9.16 9.30 9.70 8.61 4.90 Sept........ 7.30 6.77 6.49 7.18 10.38 10.30 9.67 9.24 10.12 9.44 9.46 10.11 8.93 5.45 ri4!62* Oct......... 7.22 6.56 6.21 6.99 10.16 10.23 9.80 9.27 10.41 9.53 9.64 10.31 8.78 5.38 Nov........ 6.93 6.54 6.06 7.01 9.21 9.34 9.60 8.89 10.50 9.30 9.59 10.14 8.60 5.13 Dec......... 6.78 7.04 6.65 7.50 9.53 9.56 9.56 8.89 10.55 9.23 9.59 10.02 8.78 5.43 1975—Ja.............n 6.68 6.89 6.39 7.45 9.36 9.45 9.55 8.83 c10.62 9.19 9.52 10.10 8.41 5.07 Feb.......... 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 Week ending— 1975—Jan. 4. 6.77 7.07 6.70 7.55 9.67 9.60 8.93 10.62 9.26 9.58 10.13 8.89 5.37 11. 6.68 7.01 6.60 7.50 9.62 9.45 9.60 8.91 10.63 9.24 9.55 10.17 8.62 5.25 18. 6.66 6.97 6.55 7.50 9.38 9.55 9.56 8.84 10.63 9.17 9.54 10.15 8.25 5.10 25. 6.69 6.75 6.10 7.40 9.45 9.47 9.52 8.78 10.62 9.16 9.52 10.07 8.27 5.14 Feb. 6.67 6.63 6.00 7.30 9.00 9.21 9.48 8.74 10.59 9.16 9.46 10.00 8.56 4.79 6.59 6.36 5.90 7.00 8.89 9.12 9.42 8.68 10.52 9.11 9.39 9.95 8.17 4.68 6.58 6.31 5.85 6.95 9.02 9.10 9.35 8.63 10.46 9.02 9.33 9.87 8.07 4.63 6.63 6.43 6.00 7.05 9.04 9.08 9.29 8.58 10.39 8.97 9.30 9.79 8.00 4.54 Mar. 1 6.64 6.51 6.10 7.10 8.94 9.06 9.26 8.57 10.32 8.95 9.26 9.73 8.02 4.58 Number of issues2.. . 13 20 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors Service. (3) Corporate, rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings /price ratios as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of nondata. callable issues—12 industrial and 2 public utility. Common stock ratios Bonds: Monthly and weekly yields are computed as follows: (1) U.S. on the 500 stocks in the price index. Quarterly earnings are seasonally Govt.: Averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more; from Federal Reserve Bank of New York. (2) State and local NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Stock Market Customer Financing: Note.—Annual data are averages of weekly or monthly figures. Monthly 1 Margin credit includes all credit extended to purchase or carry stocks and weekly data are averages of daily figures unless otherwise noted and are or related equity instruments and secured at least in part by stock (see computed as follows: U.S. Govt, bonds, derived from average market Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data yields in table on p. A-30 on basis of an assumed 3 per cent, 20-year for member firms of the New York Stock Exchange. June data for banks bond. Municipal and corporate bonds, derived from average yields as are universe totals; all other data for banks represent estimates for all computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- commercial banks based on reports by a reporting sample, which ac­ year bond; Wed. closing prices. Common stocks, derived from com­ counted for 60 per cent of security credit outstanding at banks on June 30, ponent common stock prices. Average daily volume of trading, normally 1971. conducted 5 days per week for 5l/i hours per day, or 21 lA hours per week. 2 In addition to assigning a current loan value to margin stock generally, In recent years shorter days and/or weeks have cut total weekly trading Regulations T and U permit special loan values for convertible bonds and to the following number of hours: stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of over the counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 a SECURITY MARKETS A 31 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43=10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m v S g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e 1 (A 9 1 3 7 0 u 1 0 3 g , ) = . NYSE AMEX 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 197 1 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 17,429 4,234 197 2 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 197 3 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 197 4 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1974—Fe b 60.83 85.3 62.0 93.45 104.13 41.85 48.13 50.01 54.02 36.26 35.27 62.81 95.11 13,517 2,079 Mar.... 58.70 83.5 61.3 97.44 108.98 42.57 47.90 52.15 56.80 38.39 35.22 64.47 99.10 14,745 2,123 Apr.... 57.01 80.2 60.3 92.46 103.66 40.26 44.03 49.21 53.95 35.87 32.59 58.72 93.57 12,109 1,752 May 56.81 77.3 59.7 89.67 101.17 37.04 39.35 47.35 52.53 33.62 30.25 52.85 84.71 12,512 1,725 June 57.11 76.2 59.5 89.79 101.62 37.31 37.46 47.14 52.63 33.76 29.20 51.20 82.88 12,268 1,561 July.... 55.97 71.9 58.5 82.82 93.54 35.63 35.37 43.27 48.35 31.01 27.50 44.23 77.92 12,459 1,610 Aug___ 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Sept.... 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 Oct....... 55.69 72.7 55.9 69.44 77.57 33.70 33.80 36.62 39.81 27.26 26.76 39.28 66.78 16,396 1,880 Nov.... 57.80 72.6 56.3 71.74 80.17 35.95 34.45 37.98 41.24 28.40 27.60 41.89 63.72 14,341 1,823 Dec. 58.96 68.6 56.1 67.07 74.80 34.81 32.85 35.41 38.32 26.02 26.18 39.27 59.88 15,007 2,359 1975—Ja.........n 59.70 70.9 56.4 72.56 80.50 37.31 38.19 38.56 41.29 28.12 29.55 44.85 68.31 19,661 2,117 Feb___ 60.27 74.1 56.6 80.10 89.29 37.80 40.37 42.48 46.00 30.21 31.31 47.59 76.08 22,311 2,545 Week ending— 1975—Feb. 1 59.83 72.6 56.5 76.37 84.84 38.29 39.74 40.60 43.61 29.60 30.60 47.34 73.51 29,138 2,978 8 60.44 74.6 56.7 78.31 87.16 37.28 40.29 42.58 44.85 29.67 31.07 48.39 74.44 25,673 2,838 15, 60.54 75.1 56.5 79.87 88.98 37.71 40.78 41.97 45.84 30.14 31.48 48.12 75.65 22,167 2,353 22, 60.13 74.1 56.6 81.80 91.28 38.12 40.80 43.32 47.07 30.75 31.71 47.51 77.08 23,221 2,958 Mar. 1, 60.00 72.7 56.5 80.74 90.15 38.14 39.84 42.69 46.46 30.40 31.07 46.33 76.78 18,568 2,112 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1973—Dec.................................... 6,382 5,251 1,131 5,050 1,070 189 46 12 15 1,866 454 1,700 1974—Jan...................................... 6,343 5,323 1,020 5,130 961 182 45 11 14 1,845 445 1,666 Feb..................................... 6,462 5,423 1,039 5,230 977 183 46 10 16 1,843 420 1,604 6,527 5,519 1,008 5,330 944 180 48 9 16 1,869 425 1,583 Apr.................................... 6,567 5,558 1,009 5,370 952 179 44 9 13 1,868 415 1,440 6,381 5,361 1,020 5,180 963 172 44 9 13 1,858 395 1,420 June................................... 6,297 5,260 1,037 5,080 991 172 34 8 12 2,072 395 1,360 July.................................... 5,948 4,925 1,023 4,760 978 158 33 7 12 2,091 402 1,391 Aug.................................... 5,625 4,672 953 4,510 912 156 29 6 12 2,119 429 1,382 Sept.................................... 5,097 3,173 924 4,020 881 148 31 5 12 2,060 437 1,354 Oct..................................... 4,996 4,080 916 3,930 872 145 32 5 12 2,024 431 1,419 Nov.................................... 4,103 3,960 139 4 410 1,447 Dec.................................... 3,980 3,840 137 3 411 1,424 1975—Jan..................................... 4,086 3,950 134 2 410 1,446 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ MARCH 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil­ End of period credit balance E pe n r d i o o d f l d i o o o n f l­ s 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 40 der status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n tof (m d i o ll l i l o a n rs s) lars) l 1974—Jan....................... 38.3 42.7 18.0 6,596 1974—Jan... 5,130 5.5 8.0 14.2 22.6 25.8 24.0 Feb....................... 39.4 43.3 24.9 6,740 Feb... 5,230 5.4 7.4 13.3 22.6 28.0 23.3 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 39.6 42.3 19.4 6,526 Apr.. 5,370 4.4 6.0 9.9 16.5 26.5 37.0 37.8 40.0 22.2 6,544 May. 5,180 4.2 5.1 8.5 13.7 23.3 45.3 40.3 37.4 22.4 6,538 June. 5,080 4.0 5.0 7.7 12.6 21.8 49.1 July...................... 40.2 36.5 23.2 6,695 July.. 4,760 4.0 4.8 7.9 13.3 22.2 47.9 39.9 34.0 26.0 6,783 Aug.. 4,510 3.5 4.0 6.6 11.2 18.4 56.3 40.7 31.2 27.0 7,005 Sept.. 4,020 3.5 3.9 6.1 10.2 18.0 58.3 40.9 35.1 24.0 7,248 Oct... 3,930 4.6 5.5 9.4 16.8 27.3 36.4 40.0 34.6 25.3 6,926 Nov.. 3,960 4.2 5.1 8.5 14.8 24.4 42.8 Dec....................... 41.1 32.4 26.5 7,013 Dec.. 3,840 4.3 4.6 8.8 13.9 23.0 45.4 1975—Jan....................... 41.1 39.3 19.8 7,185 1975—Jan. . 3,950 5.6 7.3 13.5 24.6 28.1 21.2 Note.—Special miscellaneous accounts contain credit balances that 1 Note 1 appears at the bottom of p. A-30. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t­ Other G U o . v S t . . g S l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i e T e a a t s n b o i n e e e t i r d s a l r v i a l ­ e l De it p s os­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1970............... 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 1971............... 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19723............. 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973............... 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 1973—Dec.... 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 1974—Jan.... 73,440 4,161 2,925 936 21,623 1,686 2,312 107,083 96,792 2,665 7,626 1,171 587 439 998 3,196 Feb.... 73,647 4,584 2,846 942 21,923 1,618 2,316 107,877 97,276 2,919 7,681 1,232 562 407 952 3,153 Mar... 73,957 4,825 2,851 934 22,302 1,634 2,373 108,876 98,557 2,595 7,724 1,302 525 413 929 3,168 Apr.... 74,181 4,425 2,852 951 22,366 1,601 2,347 108,722 98,035 2,943 7,744 1,214 584 401 994 3,193 May... 74,011 4,388 2,750 893 22,241 1,656 2,355 108,295 97,391 3,173 7,731 1,129 608 400 1,014 3,151 June... 74,281 4,274 2,758 880 22,324 1,651 2,488 108,654 98,190 2,688 7,776 1,099 602 328 1,001 3,031 July... 74,541 4,311 2,650 884 22,383 1,402 2,487 108,660 97,713 3,144 7,803 990 586 316 1,076 2,968 Aug---- 74,724 4,031 2,604 879 22,292 1,334 2,519 108,383 97,067 3,475 7,841 949 496 417 977 2,839 Sept... 74,790 4,087 2,574 876 22,218 1,303 2,573 108,420 97,425 3,089 7,906 932 382 450 904 2,668 Oct---- 74,835 3,981 2,525 870 22,190 1,303 2,608 108,313 97,252 3,158 7,904 775 374 360 792 2,301 Nov.... 74,913 4,226 2,553 877 22,201 1,406 2,633 108,809 97,582 3,291 7,936 724 398 317 743 2,182 Dec__ 74,890 3,790 2,565 925 22,496 2,150 2,683 109,498 98,636 2,897 7,965 664 418 232 726 2,040 1 Also includes securities of foreign governments and international were net of valuation reserves. For most items, however, the differences organizations and nonguaranteed issues of U.S. Govt, agencies. are relatively small. 2 Commitments outstanding of banks in New York State as reported to the Savings Banks Assn. of the State of New York. Data include building Note.—NAMSB data; figures are estimates for all savings banks in loans. the United States and differ somewhat from those shown elsewhere in 3 Balance sheet data beginning 1972 are reported on a gross-of-valua- the Bulletin; the latter are for call dates and are based on reports filed tion-reserves basis. The data differ somewhat from balance sheet data with U.S. Govt, and State bank supervisory agencies. previously reported by National Assn. of Mutual Savings Bank, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ SAVINGS INSTITUTIONS A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets 1970. 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16,064 10,909 1971, 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972. 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973, 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 1973--Nov.............................. 251,178 11,574 4,514 3,404 3,656 118,100 92,265 25,835 80,371 7,771 20,039 13,323 Dec............................... 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 1974--Jan................................ 253,531 11,465 4,410 3,463 3,592 119,079 93,082 25,997 81,490 7,816 20,242 13,439 Feb............................... 254,739 11,535 4,429 3,518 3,588 119,715 93,672 26,043 81,745 7,825 20,382 13,537 Mar.............................. 255,847 11,766 4,595 3,511 3,660 119,936 94,037 25,899 81,971 7,831 20,538 13,805 Apr............................... 256,583 11,594 4,317 3,526 3,751 120,466 95,010 25,456 82,469 7,795 20,830 13,429 May............................. 257,518 11,606 4,318 3,538 3,750 120,642 95,721 24,921 82,750 7,840 21,067 13,613 June............................. 258,398 11,617 4,290 3,562 3,765 120,526 95,934 24,592 83,228 7,878 21,321 13,828 July............................... 259,187 11,675 4,301 3,572 3,802 120,404 96,507 23,897 83,697 7,924 21,581 13,906 Aug.............................. 258,951 11,725 4,338 3,577 3,810 119,139 96,723 22,416 84,119 7,998 21,888 14,088 Sept.............................. 258,668 11,718 4,306 3,596 3,816 117,740 96,861 20,879 84,509 8,055 22,202 14,444 Oct............................... 261,778 11,748 4,319 3,603 3,826 120,198 97,515 22,683 85,054 8,087 22,503 14,188 Nov.............................. 262,738 11,820 4,363 3,618 3,839 120,176 92,892 22,284 85,529 8,143 22,710 14,360 i Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United Statep. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o g r e t s ­ I s i n m e t v i c e e e u s n s r t i t ­ ­ Cash Other lia T b o il t i a ti l e s S c a a v p i i n ta g l s wo N r e th t 2 m ro B o w n o e e r y ­ d 3 p L ro o i c a n e n s s s Other ou a p t ts e e t r a n i n d o d d o i 4 n f g 1970.................................. 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 1971.................................. 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972.................................. 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735................................ 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974—Jan......................... 232,607 22,403 19,392 274,402 229,145 17,281 16,735 4,371 6,870 9,781 Feb........................ 234,052 23,352 19,788 277,192 230,971 17,571 16,503 4,294 7,853 10,731 Mar....................... 236,136 23,993 20,316 280,445 235,136 17,435 16,725 4,481 6,668 12,006 Apr........................ 238,645 23,544 20,787 282,976 234,918 17,709 18,159 4,796 7,394 12,918 May....................... 241,263 23,705 21,421 286,389 235,429 18,019 19,355 5,038 8,548 12,480 June....................... 243,400 23,003 21,614 288,017 238,114 17,838 20,347 5,033 6,685 11,732 July....................... 245,135 23,052 21,926 290,113 237,631 18,101 21,708 4,867 7,806 10,844 Aug........................ 246,713 22,081 22,361 291,155 236,472 18,377 22,891 4,584 8,831 9,851 Sept....................... 247,624 21,166 22,758 291,548 237,877 18,201 24,136 4,226 7,108 9,126 Oct......................... 248,189 22,126 23,016 293,331 238,304 18,444 24,544 3,809 8,230 8,127 Nov....................... 248,711 23,249 23,306 295,266 239,530 18,674 24,550 3,444 9,068 7,723 Dec........................ 249,306 23,235 23,075 295,616 242,914 18,435 24,824 3,205 6,238 7,454 1975—Jan.*..................... 249,748 25,376 23,337 298,461 246,220 18,622 23,384 3,018 7,217 7,928 1 Excludes stock of the Federal Home Loan Bank Board. Compensating in other assets. The effect of this change was to reduce the mortgage changes have been made in “Other assets.” total by about $0.6 billion. 2 Includes net undistributed income, which is accrued by most, but not Also, GNMA-guaranteed, mortgage-backed securities of the pass­ all, associations. through type, previously included in “Cash” and “Investment securities” 3 Advances from FHLBB and other borrowing. are included in “Other assets.” These amounted to about $2.4 billion at 4 Data comparable with those shown for mutual savings banks (on the end of 1972. opposite page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. Note.—FHLBB data; figures are estimates for all savings and loan 5 Beginning 1973, participation certificates guaranteed by the Federal assns. in the United States. Data are based on monthly reports of insured Home Loan Mortgage Corporation, loans and notes insured by the assns. and annual reports of noninsured assns. Data for current and Farmers Home Administration, and certain other Govt.-insured mortgage- preceding year are preliminary even when revised. type investments, previously included in mortgage loans, are included Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 FEDERAL FINANCE □ MARCH 1975 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt, Trea­ financ­ deficit debt Agency accounts 1 Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes2 ing S i p ss e u c e ia s l Other balance Fiscal year: 197 1 188,392 211,425 -23,033 27,211 -347 6,616 801 19,448 710 -710 3,587 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 1,623 19,442 1,362 1,108 6,003 197 3 232,225 246,526 -14,301 30,881 216 11,712 109 19,275 2,459 -1,613 -4,129 197 4 264,932 268,392 -3,460 16,918 903 13,673 1,140 3,009 -3,417 898 -2,063 Half year: 1973—Jan.-June 126,164 127,947 -1,784 8,843 -661 5,716 577 1,503 -93 1,305 July-Dee. 124,256 130,362 -6,106 11,756 478 5,376 845 6,014 -2,202 -319 -2,429 1974—Jan.-June 140,679 138,032 2,647 5,162 426 8,297 295 -3,004 -1,215 1,089 231 July-Dee. 139,870 153,399 -13,591 18,429 -646 2,840 150 14,794 -3,228 248 -4,183 Month: 1974—Ja n 23,475 '23,664 -0,189 -1,714 15-1,069 139 -770 168 '530 '1,657 Feb.......... 20,226 21,030 -804 2,503 -17 2,489 159 -162 -2,877 -84 -1,995 Mar......... 16,818 22,905 -6,086 3,813 394 -155 52 4,309 690 191 2,657 Apr.......... 29,657 22,273 7,384 -2,597 37 -93 35 -2,502 3,125 1,319 -438 May........ 19,243 23,981 -4,739 2,773 -28 2,947 -211 8 -5,032 -1,120 -1,423 June........ 31,259 24,172 7,087 385 29 4,178 121 -3,886 2,711 239 -252 July......... 20,939 24,411 -3,472 1,109 -126 -858 198 1,644 -2,705 -658 -1,534 Aug......... 23,620 25,408 -1,787 6,447 -56 4,133 -25 2,283 -1,012 83 -1,425 Sept......... 28,377 24,712 3,666 -326 -167 -1,311 250 569 3,244 797 -194 Oct.......... 19,633 26,460 -6,827 -1,242 -242 -2,053 -152 721 -6,445 -338 -677 Nov.......... 22,292 24,965 -2,673 5,139 -17 653 -31 4,500 816 96 -915 Dec......... 24,946 27,442 -2,496 7,300 -38 2,276 -90 5,077 2,874 268 561 1975—Ja n 25,020 28,934 -3,914 1,475 -23 -2,173 -42 3,667 -58 319 508 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 4 ­ se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S i G p s I s e n o u c v v e ia s t e , l s t a m cc e o n u t O s n t t o h s f e 1 r S n L p o e e t c e s i s s a : 2 l E T q o u t a a l l s: s c p p o G r o N r i n o p v o s v s a w o . t t — . r e - e 5 d Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 Calendar year 197 3 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 ,857 197 4 3,113 2,749 70 5,932 492,664 11,367 117,761 25,423 (6) 360,847 Month: 1974—Jan.... 2,844 7,628 69 10,542 468,184 11,598 105,555 25,117 825 348,285 59,566 Feb.... 2,017 5,579 69 7,665 470,687 11,581 108,044 25,276 825 348,123 59,282 Mar... 1,372 6,915 69 8,356 474,500 11,975 107,889 25,328 825 352,433 59,897 Apr.... 2,814 8,576 89 11,480 471,903 12,012 107,796 25,363 825 349,931 61,151 May... 3,134 3,226 6,448 474,675 11,984 110,743 25,152 825 349,939 62,650 June... 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 July... 3,822 2,544 6,454 6475,344 11,895 114,063 25,471 (6) 347,706 68,243 Aug... 3,303 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 69,951 Sept.. . 3,209 5,386 92 8,687 481,466 11,664 116,885 25,696 350,549 73,068 Oct.... 787 1,381 71 2,239 480,224 11,422 114,832 25,544 351,270 75,343 Nov.. . 1,495 1,563 3,058 485,364 11,404 115,485 25,513 355,770 75,706 Dec.... 3,113 2,749 70 5,932 492,664 11,367 117,761 25,423 360,847 76,459 1975—Jan.... 3,540 2,114 220 5,874 494,139 11,343 115,588 25,380 364,514 1 With the publication of the Oct. 1974, Federal Reserve Bulletin, taries” (deposits in certain commercial depositaries that have been con­ these series have been corrected (beginning in fiscal year 1971) to exclude verted from a time to a demand basis to permit greater flexibility in special issues held by the Federal home loan banks and the General Treasury cash management). Services Adm. Participation Certificate Trust, which are not Govt, ac­ 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. counts. Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate 2 Represents non-interest-bearing public debt securities issued to the credit banks and banks for cooperatives (both beginning Dec. 1968). International Monetary Fund and international lending organizations. 6 Beginning July 1974, public debt securities excludes $825 million of New obligations to these agencies are handled by letters of credit. notes issued to International Monetary Fund to conform with Office of 3 Includes accrued interest payable on public debt securities, deposit Management and Budget’s presentation of the budget. funds, miscellaneous liability and asset accounts, and seigniorage. 4 As of Jan. 3, 1972, the Treasury operating balance was redefined to Note.—Half years may not add to fiscal year totals due to revisions in exclude the gold balance and to include previously excluded “Other deposi­ series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ FEDERAL FINANCE A 35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Employment Total W he i l t d h­ F p C E P t a u i r a l o i e e n m g n c s d n ­ . ­ 1 N w he i o t l h n d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s co P r n o t a a y t l x r l ­ i e b s u a t S i n o e d l n f - s2 i e n U m s n u p - r l . . c O e n i r t p e h e t ­ t e s r t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i e p s ­ t c s . 4 taxes empl. Fiscal year: 197 1 188,39276,490 24,26214,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,64983,200 25,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 197 3 232,22598,093 27,01721,866 103,24639,045 2,89352,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 197 4 264,932 112,064 2830,81223,952118,95241,744 3,12562,886 3,008 6,837 4,051 76,78016,844 3,334 5,035 5,368 Half year: 1973—Jan.-June... 126,16452,037 221,23321,179 52,09423,730 1,43430,013 2,206 3,616 1,841 37,657 8,016 1,637 2,584 1,861 July-Dee.. .. 124,25652,964 6,207 999 58,172 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 1974—Jan.-June... 140,67959,103 2824,60522,953 60,78225,156 1,631 32,919 2,808 3,862 2,08241,672 7,878 1,701 2,521 2,601 July-Dee.... 139,80761,377 7,099 1,01667,460 18,247 2,01634,418 254 2,914 2,18739,774 8,761 1,958 2,284 3,341 Month: 1974—Jan. ' 23,475 9,295 5.076 45 14,326 1,722 160 4,439 170 245 378 5,233 1,263 304 455 333 Feb............... 20,226 9,505 945 1,851 8,601 1,066 248 7,080 214 761 346 8,400 1,315 239 423 429 Mar.............. 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 5,721 1,211 277 465 377 Apr............... 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 351 6,896 1,275 286 371 602 May............. 19,243 10,083 1,204 5,651 5,641 1,318 218 7,196 311 2,190 339 10,036 1,391 295 437 343 June............. 31,259 10,611 4.077 46214,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 July.............. 20,939 10,227 957 37810,806 1,796 310 5,005 418 358 5,781 1,517 325 418 607 Aug.............. 23,620 10,223 491 229 10,485 1,084 256 7,813 1,363 368 9,544 1,415 355 453 540 Sept.............. 28,377 9,754 4,323 13013,947 6,082 435 5,428 240 62 389 6,119 1,465 305 352 543 Oct............... 19,633 10,106 561 7810,590 1,717 511 4,558 221 363 5,142 1,401 347 370 578 Nov.............. 22,292 10,638 305 111 10,832 1,111 314 6,633 762 353 7,748 1,474 319 350 773 Dec.............. 24,946 10,428 461 9010,799 6,458 190 4,982 14 89 356 5,441 1,489 307 341 301 1975—Ja.................n 25,020 10,252 1 5,366 132 15,487 1,745 557 44,,880022 223 245 402 5,673 1,351 307 385 629 Budget outlays Com- Gen­ Na­ Nat­ Com­ mun. Educa­ eral Intra- Period tional Intl. Space Agri­ ural merce deve­ tion Health Vet­ Inter­ Gen­ reve­ govt. Total de­ affairs re­ cul­ re­ and lop. and and erans est eral nue trans­ fense search ture sources transp. and man­ wel­ govt. shar­ ac­ hous­ power fare ing tions 5 ing Fiscal year: 197 2 231,876 78,336 3,786 3,422 7,061 3,759 11,197 4,216 10,198 81,538 10,747 20,584 4,889 -7,858 197 3 246,526 76,023 3,132 3,311 6,051 559 12,505 4,162 10,822 91,343 12,004 22,836 5,519 6 6,636 -8,379 197 4 268,392 79,387 3,527 3,252 5,156 -1,109 12,561 5,184 10,581 105,597 13,367 28,096 6,491 6,106 -9,893 19757..................... 304,445 87,729 4,103 3,272 2,729 3,128 13,400 5,667 11,537126,353 13,612 29,122 6,774 6,174 -10,717 Half year: 1973—Jan.-June. 127,947 40,694 1,493 1,635 1,435 230 6,306 1,525 5,690 48,130 6,264 12,217 2,650 4,019 -4,340 July-Dee.. 130,362 37,335 1,567 1,501 3,472 764 7,387 3,215 4,772 48,950 6,518 13,493 3,112 3,032 -4,756 1974—Jan.-June. 138,032 42,057 1,910 1,752 1,684 -1,782 5,174 1,969 5,809 56,619 6,848 14,655 3,403 3,074 -5,141 July-Dee.. 153,339 42,553 1,807 1,596 427 2,162 8,302 4,787 5,103 62,181 7,838 15,320 3,792 3,082 -5,551 Month: 1974—Ja n '23,664 '6,785 351 251 756 -544 r875 330 984 '9,092 1,204 2,353 '623 1,532 -928 Feb.......... 21,030 6,509 224 231 138 58 363 198 932 8,979 1,088 2,466 520 1 -677 Mar......... 22,905 6,686 345 252 205 759 746 263 1,036 9,310 1,194 2,508 499 -898 Apr.......... 22,273 6,751 336 293 89 -1,618 740 373 925 9,505 1,165 2,455 586 1,540 -867 May........ 23,981 7,243 312 278 313 428 875 352 662 10,087 1,180 2,516 498 1 -763 June........ 24,172 8,062 402 447 183 -865 1,574 452 1,270 9,675 1,017 2,308 655 -1,007 July......... 24,411 5,862 369 216 -60 498 1,099 693 854 10,060 1,258 2,525 466 1,538 -967 Aug......... 25,408 6,905 260 247 -61 514 2,257 773 925 9,925 1,236 2,477 727 -778 Sept......... 24,712 6,877 398 267 19 728 1,163 819 837 10,022 1,147 2,721 731 7 -1,026 Oct........... 26,460 7,652 62 281 358 280 1,246 752 794 10,282 1,220 2,433 529 1,533 -961 Nov......... 24,965 7,673 373 297 -155 -474 1,147 850 837 10,645 1,341 2,688 529 4 -791 Dec.......... 27,442 7,584 342 288 326 616 1,393 899 856 11,245 1,636 2,475 810 -1,027 1975—Ja n 28,934 7,307 274 298 806 650 915 1,157 1,227 11,697 1,399 2,538 489 1,528 -1,350 1 Collections of these receipts, totaling $2,427 million for fiscal year 6 Contains retroactive payments of $2,617 million for fiscal 1972. 1973, were included as part of nonwithheld income taxes prior to Feb. 7 Estimate presented in Budget of the U.S. Government, Fiscal Year 1974. 1975. Breakdown does not add to total because special allowances for 2 Old-age, disability, and hospital insurance, and Railroad Retirement contingencies, Federal pay increase (excluding Dept, of Defense), and accounts. acceleration of energy research and development, totaling $1,561 million, 3 Supplementary medical insurance premiums and Federal employee are not included. retirement contributions. 4 Deposits of earnings by F.R. Banks and other miscellaneous receipts. Note.—Half years may not add to fiscal year totals due to revisions in 5 Consists of Govt, contributions for employee retirement and of interest series that are not yet available on a monthly basis. received by trust funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES a MARCH 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S ss p u e e c s i a 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n r le d t­ s Total 3 F is o su re e i s g n 4 S b a o a v n n in d d g s s notes 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—Feb. 470.7 360.0 269.7 107.9 126.1 35.7 2.3 88.1 25.4 61.3 108.6 Mar. 474.5 364.2 273.6 111.9 126.1 35.6 2.3 88.3 25.2 61.6 108.5 Apr. 471.9 361.7 270.5 107.3 127.6 35.5 2.3 89.0 25.7 61.9 108.4 May 474.7 361.5 269.6 107.9 128.4 33.2 2.3 89.6 26.0 62.1 111.3 June 475.1 357.8 266.6 105.0 128.4 33.1 2.3 89.0 25.0 62.4 115.4 July. 475.3 359.7 268.8 107.3 128.4 33.0 2.3 88.7 24.4 62.7 114.6 Aug. 481.8 362.0 272.1 110.6 127.7 33.9 2.3 87.6 23.2 62.8 118.7 Sept. 481.5 362.7 272.6 111.1 127.7 33.8 2.3 87.8 23.2 63.0 117.4 Oct. 480.2 363.9 273.5 112.1 127.7 33.8 2.3 88.1 23.1 63.3 115.3 Nov. 485.4 368.2 277.5 114.6 129.6 33.3 2.3 88.4 23.1 63.6 115.9 Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—Jan.. 494.1 377.1 286.1 120.0 131.8 33.3 2.3 88.8 23.0 64.2 116.0 Feb.. 499.7 381.5 289.8 123.0 132.7 34.1 2.3 89.4 23.3 64.5 117.2 1 Includes non-interest-bearing debt (of which $616 million on Feb. 28, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1975, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): despositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern­ Note.—Based on Daily Statement of U.S. Treasury. See also second ment bonds, and Treasury deposit funds. paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n u n .S v c d s i . t t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t i s h s e c e s 2 . r ­ funds bonds securities 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................ 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec................ 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec................ 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................ 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................ 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Jan................. 468.2 128.7 78.2 261.2 60.2 2.8 6.3 10.7 29.9 60.5 16.9 52.8 21.1 Feb................ 470.7 131.3 78.2 261.1 58.2 2.8 6.0 10.9 30.7 60.8 17.0 53.6 21.2 Mar............... 474.5 131.2 79.5 263.8 59.5 2.8 6.1 11.7 30.4 61.1 17.3 54.9 20.0 Apr................ 471.9 131.1 80.0 260.7 56.8 2.7 5.9 10.5 30.1 61.4 17.8 55.9 19.7 May.............. 474.7 133.9 81.4 259.4 54.8 2.6 5.8 11.2 29.2 61.7 18.3 57.3 18.5 June.............. 475.1 138.2 80.5 256.4 53.2 2.6 5.9 10.8 28.3 61.9 18.8 57.7 17.3 July............... 475.3 137.5 78.1 259.7 53.9 2.6 5.7 11.3 28.8 62.2 19.4 56.9 18.8 Aug............... 481.8 141.6 81.1 259.0 53.0 2.6 5.7 11.0 29.2 62.3 20.3 56.0 19.0 Sept............... 481.5 140.6 81.0 259.8 52.9 2.5 5.7 10.5 29.3 62.5 20.8 56.0 19.5 Oct................ 480.2 138.4 79.4 262.5 53.5 2.5 5.9 11.2 28.8 62.8 21.0 56.6 20.3 Nov............... 485.4 139.0 81.0 265.3 54.5 2.5 5.9 11.0 28.7 63.2 21.1 58.3 20.1 Dec................ 492.7 141.2 80.5 271.0 56.5 2.5 6.1 11.0 29.2 63.4 21.5 58.4 22.4 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. Beginning in July 1974, total gross public debt includes Federal trust funds; Treasury estimates for other groups. Financing Bank bills and excludes notes issued to the IMF ($825 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ U.S. GOVERNMENT SECURITIES A 37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r r s Total Bills Other All holders: 1971—Dec. 31........................................................ 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Dec. 31........................................................ 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31........................................................ 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Dec. 31........................................................ 282,891 148,086 119,747 28,339 85,311 27,897 14,833 6,764 1975—Jan. 31........................................................ 286,133 149,383 121,044 28,339 87,339 27,894 14,795 6,722 U.S. Govt, agencies and trust funds: 1971—Dec. 31................................................ 18,444 1,380 605 775 7,614 4,676 2,319 2,456 1972—Dec. 31................................................ 19,360 1,609 674 935 6,418 5,487 4,317 1,530 1973—Dec. 31................................................ 20,962 2,220 631 1,589 7,714 4,389 5,019 1,620 1974—Dec. 31................................................ 21,391 2,400 588 1,812 7.823 4,721 4,670 1,777 1975—Jan. 31................................................ 21,374 2,550 640 1,910 7,737 4,643 4,672 1,773 Federal Reserve Banks: 1971—Dec. 31................................................ 70,218 36,032 31,033 4,999 25,299 7,702 584 601 1972—Dec. 31................................................ 69,906 37,750 29,745 8,005 24,497 6,109 1,414 136 1973—Dec. 31................................................ 78,516 46,189 36,928 9,261 23,062 7,504 1,577 184 1974—Dec. 31................................................ 80,501 45,388 36,990 8,399 23,282 9,664 1,453 713 1975—Jan. 31................................................ 81,344 45,575 37,076 8,499 23,797 9,764 1,457 751 Held by private investors: 1971—Dec. 31................................................ 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 1972—Dec. 31................................................ 180,243 91,063 73,451 17,612 57,649 17,547 9,570 4,413 1973—Dec. 31................................................ 170,746 93,162 70,227 22,935 50,939 13,241 9,063 4,341 1974—Dec. 31................................................ 180,999 100,298 82,168 18,130 54,206 13,512 8,710 4,274 1975—Jan. 31................................................ 183,415 101,258 83,328 17,930 55,805 13,487 8,666 4,198 Commercial banks: 1971—Dec. 31......................................... 51,363 14,920 8,287 6,633 28,823 6,847 555 217 1972—Dec. 31........................................ 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Dec. 31......................................... 45,737 17,499 7,901 9,598 22,878 4,022 1,065 272 1974—Dec. 31......................................... 42,755 14,873 6,952 7,921 22,717 4,151 733 280 1975—Jan; 31......................................... 41,372 13,057 5,287 7,770 23,251 4,103 718 244 Mutual savings banks: 1971—Dec. 31......................................... 2,742 416 235 181 1,221 499 281 326 1972—Dec. 31......................................... 2,609 590 309 281 1,152 469 274 124 1973—Dec. 31........................................ 1,955 562 222 340 750 211 300 131 1974—Dec. 31......................................... 1,477 399 207 192 614 174 202 88 1975—Jan. 31......................................... 1,480 292 126 166 678 203 197 110 Insurance companies: 1971—Dec. 31......................................... 5,679 720 325 395 1,499 993 1,366 1,102 1972—Dec. 31......................................... 5,220 799 448 351 1,190 976 1,593 661 1973—Dec. 31......................................... 4,956 779 312 467 1,073 1,278 1,301 523 1974—Dec. 31......................................... 4,741 722 414 308 1,061 1,310 1,297 351 1975—Jan. 31......................................... 4,804 743 447 296 1,075 1,328 1,312 346 Nonfinancial corporations: 1971—Dec. 31......................................... 6,021 4,191 3,280 911 1,492 301 16 20 1972—Dec. 31......................................... 4,948 3,604 1,198 2,406 1,198 121 25 1 1973—Dec. 31......................................... 4,905 3,295 1,695 1,600 1,281 260 54 15 1974—Dec. 31......................................... 4,246 2,623 1,859 764 1,423 115 26 59 1975—Jan. 31......................................... 4,364 2,340 1,643 697 1,778 150 49 48 Savings and loan associations: 1971—Dec. 31......................................... 3,002 629 343 286 1,449 587 162 175 1972—Dec. 31......................................... 2,873 820 498 322 1,140 605 226 81 1973—Dec. 31......................................... 2,103 576 121 455 1,011 320 151 45 1974—Dec. 31......................................... 1,663 350 87 263 835 282 173 23 1975—Jan. 31......................................... 1,664 323 83 240 866 282 169 25 State and local governments: 1971—Dec. 31......................................... 9,823 4,592 3,832 760 2,268 783 918 1,263 1972 Dec. 31......................................... 10,904 6,159 5,203 956 2,033 816 1,298 598 1973 Dec. 31......................................... 9,829 5,845 4,483 1,362 1,870 778 1,003 332 1974—Dec. 31......................................... 7,864 4,121 3,319 802 1,796 815 800 332 1975—Jan. 31......................................... 8,552 4,867 4,057 810 1,681 814 855 334 All others: 1971—Dec. 31........................................ 94,746 56,261 49,565 6,696 23,983 6,933 3,329 4,237 1972—Dec. 31........................................ 101,249 61,014 55,506 5,508 23,171 8,906 5,290 2,868 1973—Dec. 31........................................ 101,261 64,606 55,493 9,113 22,076 6,372 5,189 3,023 1974—Dec. 31......................................... 118,253 77,210 69,330 7,880 25,760 6,664 5,479 3,141 1975—Jan. 31........................................ 121,178 79,636 71,686 7,950 26,476 6,607 5,365 3,093 Note.—Direct public issues only. Based on Treasury Survey of banks, and 733 insurance companies combined, each about 90 per cent; Ownership. (2) 462 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 503 State and local govts., about 40 per cent, but data for other groups include only holdings of those institutions “All others,” a residual, includes holdings of all those not reporting that report. The following figures show, for each category, the number in the Treasury Survey, including investor groups not listed separately, and proportion reporting: (1) 5,573 commercial banks, 476 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES □ MARCH 1975 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1974—Jan................................ 3,659 3,074 325 215 45 706 889 1,103 962 695 Feb............................... 4,229 3,192 402 561 74 795 1,058 1,299 1,077 1,019 Mar.............................. 3,697 2,814 450 369 64 744 892 1,071 991 733 Apr............................... 3,338 2,682 438 173 45 614 836 951 937 710 May............................. 3,542 2,645 693 133 72 711 905 991 936 861 June............................. 3,084 2,549 385 110 41 693 759 877 755 978 July.............................. 2,566 2,114 348 66 38 490 685 681 710 1,044 Aug.............................. 3,097 2,407 389 238 64 554 876 789 878 856 Sept.............................. 4,114 3,327 472 265 50 683 1,351 1,022 1,058 1,227 Oct............................... 3,543 2,802 498 193 50 607 1,087 928 920 1,150 Nov.............................. 3,977 2,872 635 384 86 560 1,049 1,144 1,224 1,186 Dec............................... 4,111 3,126 550 369 67 671 1,196 1,120 1,124 1,087 1975—Jan............................... 5,415 3,495 1,514 303 104 887 1,549 1,503 1,478 1,244 Week ending— 1975—Jan. 1....................... 3,546 2,778 554 176 38 639 643 1,154 1,111 545 8....................... 5,622 3,944 1,422 188 68 914 1,657 1,538 1,513 1,087 15....................... 5,126 3,351 1,421 242 112 846 1,371 1,486 1,423 1,236 22....................... 4,825 3,618 972 176 59 827 1,390 1,311 1,298 1,448 29....................... 5,650 3,337 2,059 193 62 945 1,663 1,552 1,489 1,185 Feb. 5....................... 7,439 3,453 2,334 1,262 390 943 2,683 1,954 1,859 1,313 12....................... 6,358 3,763 1,432 905 259 819 2,362 1,637 1,540 1,139 19....................... 5,528 3,499 1,271 635 123 660 1,829 1,551 1,488 1,466 26....................... 4,646 2,794 1,256 479 117 511 1,593 1,187 1,355 1,165 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a i t e l u s l ri­ W y i e 1 th ar in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e i o e u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1974—Jan................. 3,653 3,210 51 262 130 1,324 1974—Jan............. 4,802 1,747 1,253 658 1,143 Feb................. 4,081 2,707 537 647 190 1,435 Feb............. 4,837 1,545 1,501 533 1,257 Mar................ 2,587 2,149 50 287 102 1,045 Mar............ 3,817 1,196 952 485 1,185 Apr................. 1,536 1,577 -121 62 17 719 2,449 600 728 287 833 May............... 495 421 -33 66 41 791 May........... 1,637 26 486 213 913 June............... 594 447 52 78 16 1,226 June........... 2,477 241 884 268 1,083 July................ 263 219 -50 90 . 4 935 July........... 1,710 6 596 216 892 Aug............... 2,487 1,819 228 356 84 1,073 Aug............ 4,138 988 1,248 548 1,354 Sept................ 3,060 2,317 334 340 69 1,216 Sept............ 4,709 1,312 1,247 480 1,671 Oct................. 2,870 2,149 430 260 31 1,445 4,621 1,194 1,003 571 1,853 Nov................ 4,513 2,999 728 618 169 1,531 Nov........... 5,626 1,466 1,245 561 2,355 Dec................. 4,831 3,100 975 559 197 1,803 6,904 2,061 1,619 691 2,534 1975—Jan................. 4,653 2,689 1,254 598 113 1,578 1975—Jan............. 6,185 1,455 1,277 864 2,590 Week ending— Week ending— 1974—Dec. 4........ 4,615 3,135 650 620 210 1,408 1974—Dec. 4. .. 5,346 1,191 1,173 575 2,406 11 , 4,642 3,121 743 575 203 1,634 11. .. 6,843 2,051 1,862 854 2,077 18........ 5,391 3,829 802 550 210 1,855 18. .. 7,738 2,786 1,927 775 2,250 25........ 4,663 3,023 927 523 190 1,995 25... 7,244 2,219 1,466 613 2,947 1975—Jan. 1......... 4,741 2,258 1,776 535 171 2,056 1975—Jan. 1... 6,436 1,424 1,344 565 3,103 8......... 5,341 2.501 2,051 641 149 1,831 8. .. 6,649 1,495 1,476 720 2,958 15......... 5,440 3,485 1,243 616 95 1,550 15... 7,271 1,801 1,802 1,139 2,529 22 3,666 2,105 849 603 109 1,426 22... 5,625 1,394 961 792 2,478 29......... 4,125 2,673 907 480 65 1,504 29. .. 5,360 1,197 963 849 2,351 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ FEDERALLY SPONSORED CREDIT AGENC A ;SUES OF FEDERALLY SPONSORED CREDIT AGENCIES, JANUARY 3 Amount Cou­ Amount nour (millions Agency, and date of issue pon (millions Agency, and date of issue illioi of dollars) and maturity rate of dollars) and maturity iollai Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 250 Debentures: 8/1/74-2/3/75. .. 581 400 11/10/70 - 3/10/75........ 7.55 300 9/3/74 - 3/3/75.. . 576 500 10/12/71 - 3/10/75........ 6.35 600 10/1/74 -4/1/75.. 463 700 4/12/71 -6/10/75............ 5.25 500 11/4/74 - 5/1/75.. 683 265 10/13/70 - 9/10/75........ 7.50 350 12/2/74 - 6/2/75.. 511 300 3/12/73 -9/10/75............ 6.80 650 1/2/75 -7/1/75. .. 440 300 3/10/72 - 12/10/75........ 5.70 500 10/1/73 -4/4/77.. 200 500 9/10/73 - 12/10/75.......... 8.25 300 12/2/74 - 10/1/79. 201 400 3/11/71 - 3/10/76............ 5.65 500 350 6/12/73 - 3/10/76............ 7.13 400 600 6/10/71 -6/10/76............ 6.70 250 Federal intermediate 700 2/10/72 -6/10/76............ 5.85 450 credit banks 400 9/10/74 - 6/10/76............ 10.00 700 Bonds: 250 11/10/71 - 9/10/76.......... 6.13 300 5/1/74-2/3/75........ 689 300 6/12/72-9/10/76........... 5.85 500 6/3/74 -3/3/75........ 796 600 12/10/74-9/10/76.......... 7.50 200 7/1/74-4/1/75........ 811 600 7/12/71 - 12/10/76.......... 7.45 300 8/1/74- 5/1/75........ 766 300 12/11/72- 12/10/76........ 6.25 500 9/3/74 - 6/2/75........ 714 500 6/10/74-12/10/76.......... 8.45 600 10/1/74-7/1/75.... 769 700 2/13/62 - 2/10/77.......... 41/2 198 1/3/72 -7/1/75........ 302 600 9/11/72 - 3/10/77............ 6.30 500 11/4/74-8/4/75___ 713 500 3/11/74 - 3/10/77............ 7.05 400 12/2/74 -9/2/75.... 768 500 12/10/70 - 6/10/77........ 6.38 250 1/2/75 - 10/2/75 ___ 458 500 5/10/71 -6/10/77............ 6.50 150 3/1/73 - 1/5/76........ 261 500 12/10/73 - 6/10/77.......... 7.20 500 7/2/73 - 1/3/77........ 236 200 9/10/71 -9/12/77............ 6.88 300 7/1/74 -4/4/77........ 321 300 9/10/73 -9/12/77............ 7.85 400 1/2/74 - 1/3/78........ 406 600 7/10/73 - 12/12/77.......... 7.25 500 1/2/75 - 1/2/79........ 410 300 10/1/73 - 12/12/77.......... 7.55 500 300 6/10/74 - 3/10/78............ 8.45 650 700 6/12/73 - 6/12/78............ 7.15 600 Federal land banks 400 3/11/74-9/11/78............ 7.15 550 Bonds: 500 10/12/71 - 12/11/78. . .. 6.75 300 4/20/65 - 4/21/75.. 200 500 7/10/74- 12/11/78.......... 8.95 450 7/20/73 -4/21/75... 300 600 12/10/73 - 3/12/79.......... 7.25 500 2/15/72 - 7/21/75... 425 600 9/10/73 -6/11/79............ 7.85 300 4/22/74-7/21/75... 300 500 9/10/74 - 6/11/79............ 9.80 600 7/20/71 - 10/20/75.. 300 400 6/12/72-9/10/79............ 6.40 300 10/23/73 - 10/20/75. 362 500 12/10/74 - 9/10/79.......... 7.80 700 4/20/72 - 1/20/76... 300 500 12/10/71 - 12/10/79___ 6.55 350 7/22/74 - 1/20/76.. . 650 500 2/10/72 - 3/10/80............ 6.88 250 2/21/66 - 2/24/76.. 123 350 6/10/74-6/10/80............ 8.50 600 1/22/73 -4/20/76... 373 300 2/16/73 - 7/31/80........... 5.19 1 4/22/74-4/20/76... 400 200 2/16/73 - 7/31/80............ 3.18 9 7/20/66 - 7/20/76. . 150 200 10/1/73 -9/10/80............ 7.50 400 1/21/74 - 7/20/76. .. 360 400 1/16/73 - 10/30/80.......... 4.46 5 4/23/73 - 10/20/76.. 450 200 12/11/72 - 12/10/80........ 6.60 300 4/22/74 - 4/20/77... 565 300 6/29/72- 1/29/81............ 6.15 156 7/20/73 -7/20/77... 550 400 3/12/73 - 3/10/81............ 7.05 350 10/20/71 - 10/20/77. 300 4/18/73-4/10/81............ 6.59 26 10/21/74- 1/23/78. . 546 3/21/73 - 5/1/81.............. 4.50 18 2/20/63 - 2/20/73-78 148 3/21/73 - 5/1/81.............. 5.77 2 5/2/66 - 4/20/78 . . . 150 1/21/71 - 6/10/81.......... 7.25 250 1/20/75 -4/20/78. .. 713 400 9/10/71 -9/10/81............ 7.25 250 7/20/72 - 7/20/78. . 269 350 9/10/74-9/10/81............ 9.70 300 7/22/74 - 7/20/78.. . 350 140 3/11/74 - 12/10/81.......... 7.30 250 10/23/73 - 10/19/78. 550 150 7/10/74-3/10/82............ 8.88 300 2/20/67 - 1/22/79... 285 150 6/28/72-5/1/82.............. 5.84 58 1/21/74- 1/22/79. .. 300 2/10/71 - 6/10/82............ 6.65 250 9/15/72 -4/23/79... 235 9/11/72 - 9/10/82............ 6.80 200 2/20/74 - 7/23/79. .. 389 12/10/73 - 12/10/82........ 7.35 300 10/23/72 - 10/23/79. 400 3/11/71 - 6/10/83............ 6.75 200 1/22/73 - 1/21/80... 300 3,332 6/12/73 -6/10/83............ 7.30 300 7/20/73 - 7/21/80... 250 11/10/71 -9/12/83.......... 6.75 250 10/21/74- 10/20/80. 400 200 4/12/71 -6/11/84............ 6.25 200 2/23/71 -4/20/81... 224 248 12/10/74-9/10/84.......... 7.95 300 7/22/74 - 7/20/81... 265 250 12/10/71 - 12/10/84___ 6.90 250 1 /20/75 - 1 /20/82 . .. 400 3/10/72 - 3/10/92.......... 7.00 200 4/20/72 - 4/20/82... 200 6/12/72-6/10/92........... 7.05 200 4/23/73 - 10/20/82.. 239 250 12/11/72 - 12/10/97-82. . 7.10 200 10/23/73 - 10/20/83. 300 53 5 71 35 10 21 81 200 by the U.S. Govt.; see also note to table at top of p. A-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERALLY SPONSORED CREDIT AGENCIES □ MARCH 1975 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad­ Cash Mem­ Deben­ Loans Loans vances Invest­ and Bonds ber Capital Mort­ tures to and Mort­ to ments de­ and de­ stock gage and cooper­ Bonds dis­ Bonds gage Bonds mem­ posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 1970............. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971............. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972............. 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973............. 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974—Feb... 14,904 2,680 116 13,906 1,936 2,294 24,541 23,092 3,211 2,828 7,277 7,029 11,402 10,282 Mar... 14,995 2,779 124 13,906 2,027 2,306 24,888 23,515 3,143 2,878 7,545 7,162 11,467 10,282 Apr... 16,020 1,615 82 13,902 2,067 2,337 25,264 23,668 2,891 2,810 7,850 7,403 11,878 10,843 May.. 17,103 1,956 96 14,893 2,215 2,376 25,917 25,089 2,694 2,674 8,195 7,585 12,142 10,843 June.. 17,642 2,564 115 16,393 2,158 2,413 26,559 25,232 2,733 2,449 8,479 7,860 12,400 10,843 July.. 18,582 2,578 150 17,390 1,954 2,450 27,304 25,878 3,008 2,477 8,706 8,212 12,684 11,782 Aug... 19,653 2,052 80 18,759 1,935 2,495 28,022 26,639 3,026 2,622 8,548 8,381 12,941 11,782 Sept... 20,772 2,681 135 20,647 2,160 2,543 28,641 27,312 3,092 2,835 8,931 8,502 13,185 11,782 Oct... 21,409 3,224 105 22,058 2,129 2,580 29,139 27,543 3,598 2,855 8,838 8,482 13,418 12,427 Nov.. 21,502 2,568 106 21,474 2,182 2,603 29,407 28,024 3,573 3,295 8,700 8,441 13,643 12,427 Dec... 21,804 3,094 144 21,878 2,484 2,624 29,709 28,201 3,575 3,561 8,848 8,400 13,643 12,427 1975—Jan.. . 20,728 4,467 113 21,778 2,612 2,699 29,797 28,030 3,910 3,653 8,888 8,419 14,086 13,020 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u s s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 197 1 24,962 15,220 8,681 1,000 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,652 13,305 9,332 959 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 1973........... 23,970 12,257 10,632 1,022 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 1974........... 23,705 13,204 9,961 461 4,659 8,499 10,470 20,210 4,709 767 5,513 1,045 8,176 1974—Jan.. 2,257 1,407 848 208 865 1,182 2,178 595 36 372 56 1,119 Feb.. 2,007 1,209 794 473 564 967 1,939 460 53 612 39 775 Mar. 2,029 1,181 617 227 344 793 887 1,906 366 258 363 241 678 Apr.. 2,406 1,708 689 360 862 1,177 2,361 516 9 595 178 1,063 May. 2,313 1,101 1,203 451 1,097 756 2,237 442 1 711 8 1,058 June. 2,171 1,075 856 234 580 721 864 2,079 220 62 664 334 799 Julyr 1,466 859 600 540 158 761 1,456 314 58 154 930 Augr 1,109 576 529 141 400 565 1,067 228 85 257 15 482 Septr 1,705 869 832 448 641 611 1,669 251 11 380 21 1,006 Oct.r 2,865 1,707 1,153 328 974 1,558 2,738 343 110 236 110 1,939 Novr 2,487 1,110 1,374 689 1,005 789 2,403 698 4 866 9 826 Dec.’ 1,500 761 717 222 558 700 1,475 297 64 424 53 637 1975—Jan.. 2,071 1,299 766 375 544 1,145 2,048 690 36 550 141 631 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 4 Water, sewer, and other utilities. by contract requiring the Housing Assistance Administration to make 5 Includes urban redevelopment loans. annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. Note.—Security Industries Assn. data; par amounts of long-term issues 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser based on date of sale unless otherwise indicated. and payment to issuer, which occurs after date of sale. Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 a SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 al Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1970. 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 1971., 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972., 96,522 17,080 12,825 23,070 1,589 41,957 28,896 19,434 9,462 3,367 9,694 1973., 100,417 19,057 23,883 22,700 1,385 33,391 22,268 13,649 8,620 3,372 7,750 1973—Nov.. 12,553 4,521 2,200 2,224 45 3,563 2,257 1,669 589 637 668 Dec.. 6,635 148 1,032 1,966 251 3,238 2,469 1,552 917 196 573 1974—Jan. 3,341 2,908 2,115 794 152 278 Feb.... 2.690 2,104 1,683 421 268 318 Mar... 3,216 2,457 2,020 437 398 362 Apr..., 3,067 2,265 1,594 671 355 446 May... 3,164 2,957 2,350 607 65 142 June r. 2,987 2,461 1,939 522 113 413 July'.. 3,260 2,705 2,086 619 228 327 Aug.r. 2,668 2,341 2,042 299 107 220 Sept.r. 1,629 1,214 897 317 126 289 Oct.r.. 4,538 3,685 3,423 262 196 657 Nov.., 3.690 3,275 3,016 259 327 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd ea f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1970............................................... 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 1971.............................................. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1972.............................................. 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 2,095 1973.............................................. 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1973—Nov.................................... 383 93 61 92 241 4 584 496 296 499 692 122 485 18 145 285 226 6 569 319 350 27 693 115 1974—Jan. 6................................. 867 29 136 124 89 1,192 249 142 4 485 27 Feb..................................... 354 36 '55 143 5 1 536 293 372 25 783 87 Mar.................................... 479 161 52 71 76 850 449 310 21 691 58 Apr.................................... 1,193 9 238 56 6 446 685 289 5 95 47 May................................... 847 15 332 71 44 837 75 660 3 239 44 June'................................. 440 44 311 139 5 15 859 288 355 1 491 39 July'.................................. 1,051 43 257 93 62 1 318 300 242 53 776 65 Aug.'................................. 601 4 38 62 14 862 217 364 462 44 Sept.'................................. 186 2 45 47 50 5 384 296 331 18 218 48 Oct.'.................................. 690 3 92 29 301 1,391 695 435 36 776 90 Nov.................................... 1,667 2 109 110 336 739 224 60 26 366 54 1 Gross proceeds are derived by multiplying principal amounts or 6 Beginning Jan. 1974 noncorporate figures are no longer published by number of units by offering price. the SEC. 2 Includes guaranteed issues. 3 Issues not guaranteed. Note.—Securities and Exchange Commission estimates of new issues 4 See note to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ­ izations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 SECURITY ISSUES □ MARCH 1975 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1970....................... 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 1971....................... 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1972....................... 42,306 10,224 32,082 27,065 8,003 19,062 15,242 2,222 13,018 1973....................... 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 1973—III.............. 6,532 2,150 4,382 4,521 1,579 2,941 2,012 571 1,441 IV............... 10,711 4,378 6,334 7,013 3,786 3,227 3,698 591 3,107 1974_I.................. 8,973 2,031 6,942 6,810 1,442 5,367 2,163 588 1,575 II................ 9,637 2,048 7,589 7,847 1,584 6,263 1,790 465 1,326 Ill............... 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,759 82 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 1971....................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972....................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973....................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1973—III............ 165 450 108 247 414 -44 1,217 557 752 77 284 154 IV............... -131 147 -162 460 176 -13 1,068 1,506 1,051 575 1,225 431 1974—1.................. 906 324 -11 363 -37 -35 2,172 827 675 76 1,662 20 II................. 1,921 -12 698 213 -13 12 1,699 1,038 1,080 -7 877 82 Ill............... 1,479 -421 189 -664 49 -6 1,358 862 1,116 222 1,194 88 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com­ 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in­ Note.—Securities and Exchange Commission estimates of cash trans­ ternal funds or with proceeds of issues for that purpose. actions only. As contrasted with data shown on preceding page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963.............. 2,460 1,504 952 25,214 1,341 23,873 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Feb... 215 303 -88 45.958 4,447 41,511 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Mar... 297 346 -49 44,423 4,406 40,017 Apr... 262 327 -65 42,679 4,426 38,253 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 May.. 323 320 3 41,015 4,389 36,626 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 June.. 337 276 61 40,040 4,461 35,579 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 July. . 442 352 90 37,669 4,609 33,060 Aug... 446 339 127 35,106 4,953 30,153 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Sept... 499 292 207 31,985 5,078 26,907 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 Oct.. . 816 311 505 37,115 5,652 31,463 1971.............. 5,145 4,751 r394r55,045 r3,038 '52,007 Nov... 619 335 284 36,366 5,804 30,562 Dec... 736 411 325 35,777 5,637 30,140 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 1973.............. 4,358 5,651 -1,261 46,518 4,002 42,516 1975—Jan... 1,067 428 639 39,573 6,055 33,518 1974.............. 5,346 3,937 1,409 35,777 5,637 30,140 1 Includes contractual and regular single-purchase sales, voluntary and Note.—Investment Company Institute data based on reports of mem­ contractual accumulation plan sales, and reinvestment of investment in­ bers, which comprise substantially all open-end investment companies come dividends; excludes reinvestment of realized capital gains dividends. registered with the Securities and Exchange Commission. Data reflect 2 Market value at end of period less current liabilities. newly formed companies after their initial offering of securities. 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BUSINESS FINANCE A 43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a t l i l s p o o u i n w t m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a t n a l i l s o p o u n i w t m a ­ l p ­ ances1 ances 1 1968.............. 87.6 39.9 47.8 23.6 24.2 46.8 1972—IV... 108.2 45.2 63.1 28.2 34.9 68.2 1969.............. 84.9 40.1 44.8 24.3 20.5 51.9 1970.............. 74.0 34.8 39.3 24.7 14.6 56.0 1973—1. 120.4 48.9 71.5 28.7 42.8 69.2 1971.............. 83.6 37.5 46.1 25.0 21.1 60.4 II.... 124.9 50.9 74.0 29.1 44.9 70.8 1972.............. 99.2 41.5 57.7 27.3 30.3 66.3 III... 122.7 49.9 72.9 29.8 43.1 71.6 1973.............. 122.7 49.8 72.9 29.6 43.3 71.2 IV... 122.7 49.5 73.2 30.7 42.5 73.1 1974.............. 141.0 55.8 85.2 32.7 52.5 76.7 1974—1___ 135.4 52.2 83.2 31.6 51.6 74.1 II. . . 139.0 55.9 83.1 32.5 50.5 75.7 III... 157.0 62.7 94.3 33.2 61.1 77.6 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 1970.............................. 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971.............................. 204.9 518.8 55.7 10.7 3.5 208.8 200.3 39.7 313.9 4.9 207.3 12.2 89.5 1972—III..................... 219.2 547.5 57.7 7.8 2.9 224.1 212.2 42.8 328.3 4.7 212.1 12.7 98.8 IV..................... 224.3 563.1 60.5 9.9 3.4 230.5 215.1 43.6 338.8 4.0 221.6 14.1 99.1 1973—1......................... 231,8 579.2 61.2 10.8 3.2 235.7 222.8 45.5 347.4 4.1 222.8 15.7 104.7 II....................... 237.7 596.8 62.3 9.6 2.9 245.6 230.3 46.0 359.1 4.5 232.5 13.9 108.1 Ill..................... 241.9 613.6 62.2 9.5 3.0 254.2 238.2 46.6 371.7 4.4 240.8 15.3 111.2 IV...................... 245.3 631.4 65.2 10.7 3.5 255.8 247.0 49.3 386.1 4.3 252.0 16.6 113.3 1974—1......................... 253.2 653.9 62.8 11.7 3.2 265.6 258.9 51.6 400.7 4.5 256.7 18.7 120.7 II....................... 257.4 673.3 62.2 10.4 3.4 278.7 269.7 48.8 415.8 4.7 268.4 17.4 125.3 Ill..................... 263.6 696.0 63.9 10.7 3.5 284.1 282.7 51.1 432.4 5.1 276.6 20.5 130.2 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Commu­ Total Period Total Durable du N r o a n bl ­ e Mining R ro a a i d l­ Air Other Electric and G a o s t her nications Other1 A (S . . R A .) . 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972....................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973....................... 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 1974....................... 111.92 22.67 23.13 3.10 2.48 1.97 2.03 17.65 2.95 13.86 22.08 1972—III............... 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV............... 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—1.................. 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II................. 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill............... 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV................ 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 103.74 1974—1.................. 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II................ 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill............... 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV2.............. 31.44 6.69 6.73 .83 .72 .45 .63 4.82 .90 9.'67 114.40 1 Includes trade, service, construction, finance, and insurance. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 REAL ESTATE CREDIT □ MARCH 1975 MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER (In millions of dollars) End of year End of quarter Type of holder, and type of property 1973 1974 1970 1971 1972 IV I II III IV ' ALL HOLDERS............................................ 451,726 499,758 564,825 634,955 646,116 664,287 677,902 686,964 1- to 4-family................................................ 280,175 307,200 345,384 386,241 391,770 402,165 409,924 414,078 Multifamily1................................................ 58,023 67,367 76,496 85,401 86,591 88,269 90,232 91,845 Commercial.................................................. 82,292 92,333 107,508 123,965 127,384 132,122 134,719 136,792 Farm............................................................. 31,236 32,858 35,437 39,348 40,371 41,731 43,027 44,249 PRIVATE FINANCIAL INSTITUTIONS.. 355,929 394,239 450,000 505,401 513,946 528,212 536,868 541,498 1- to 4-family................................................ 231,317 253,540 288,053 322,048 326,863 335,442 340,597 342,891 Multifamily1................................................ 45,796 52,498 59,204 64,730 65,386 66,594 67,806 68,423 Commercial.................................................. 68,697 78,345 92,222 107,128 110,047 114,185 116,182 117,775 Farm............................................................. 10,119 9,856 10,521 11,495 11,650 11,991 12,283 12,409 73,275 82,515 99,314 119,068 121,882 127,320 129,943 131,047 1- to 4-family............................................ 42,329 48,020 57,004 67,998 69,374 72,253 73,539 73,950 Multifamily1............................................ 3,311 3,984 5,778 6,932 7,046 7,313 7,415 7,430 Commercial.............................................. 23,284 26,306 31,751 38,696 39,855 41,926 43,011 43,639 Farm......................................................... 4,351 4,205 4,781 5,442 5,607 5,828 5,978 6,028 Mutual savings banks................................... 57,948 61,978 67,556 73,231 73,957 74,264 74,792 74,890 1- to 4-family............................................ 37,342 38,641 41,650 44,247 44,462 44,426 44,593 44,649 Multifamily1............................................. 12,594 14,386 15,490 16,843 17,011 17,081 17,202 17,225 Commercial.............................................. 7,893 8,901 10,354 12,084 12,425 12,698 12,938 12,956 Farm......................................................... 119 50 62 57 59 59 59 60 Savings and loan associations...................... 150,331 174,250 206,182 231,733 236,136 243,400 247,624 249,303 1- to 4-family............................................ 124,970 142,275 167,049 187,750 191,223 197,008 200,551 201,910 Multifamily1............................................ 13,830 17,355 20,783 22,524 22,763 23,342 23,623 23,784 Commercial.............................................. 11,531 14,620 18,350 21,459 22,150 23,050 23,450 23,609 Life insurance companies............................. 74,375 75,496 76,948 81,369 81,971 83,228 84,509 86,258 1- to 4-family............................................ 26,676 24,604 22,350 22,053 21,804 21,755 21,914 22,382 Multifamily1............................................ 16,061 16,773 17,153 18,431 18,566 18,858 19,566 19,984 Commercial.............................................. 25,989 28,518 31,767 34,889 35,617 36,511 36,783 37,571 Farm......................................................... 5,649 5,601 5,678 5,996 5,984 6,104 6,246 6,321 FEDERAL AND RELATED AGENCIES.. 32,992 39,357 45,790 55,664 58,430 62,535 67,694 72,246 1- to 4-family................................................ 21,993 26,453 30,147 35,454 37,168 39,784 43,188 45,748 Multifamily1................................................ 3,359 4,555 6,086 8,489 8,923 9,643 10,644 11,790 Commercial.................................................. 16 11 7,624 8,338 9,557 11,721 12,339 13,108 13,862 14,708 Government National Mortgage Association 5,222 5,323 5,113 4,029 3,604 3,618 4,052 4,848 1- to 4-family............................................ 2,902 2,770 2,490 1,330 1,189 1,194 1,337 1,600 Multifamily 1............................................ 2,304 2,542 2,623 2,699 2,415 2,424 2,715 3,248 Commercial.............................................. 16 11 767 819 837 1,200 1,300 1,400 1,500 1,600 1- to 4-family............................................ 330 398 387 550 596 642 688 734 Farm......................................................... 437 421 450 650 704 758 812 866 Federal Housing and Veterans Administra­ tions ....................................................... 3,505 3,389 3,338 3,476 3,514 3,619 3,765 3,900 1- to 4-family............................................ 2,111 2,517 2,199 2,013 1,964 1,980 2,037 2,083 Multifamily1............................................. 734 872 1,139 1,463 1,550 1,639 1,728 1,817 Federal National Mortgage Association.... 15,502 17,791 19,791 24,175 24,875 26,559 28,641 29,578 1- to 4-family............................................ 15,181 16,681 17,697 20,370 20,516 21,691 23,258 23,778 Multifamily1............................................ 321 1,110 2,094 3,805 4,359 4,868 5,383 5,800 Federal land banks (farm only).................. 7,187 7,917 9,107 11,071 11,635 12,350 13,050 13,842 Federal Home Loan Mortgage Corporation. 357 964 1,789 2,604 2,637 3,191 3,713 4,586 1- to 4-family............................................ 357 934 1,754 2,446 2,472 2,951 3,414 4,217 Multifamily1............................................ 30 35 158 165 240 299 369 GNMA Pools................................................ 452 3,154 5,815 9,109 10,865 11,798 12,973 13,892 1- to 4-family............................................ 452 3,153 5,620 8,745 10,431 11,326 12,454 13,336 Multifamily*............................................ 1 195 364 434 472 519 556 INDIVIDUALS AND OTHERS3................ 62,805 66,162 69,035 73,890 73,740 73,540 73,340 73,220 1- to 4-family................................................ 26,865 27,207 27,184 28,739 27,739 26,939 26,139 25,439 Multifamily1................................................ 8,868 10,314 11,206 12,182 12,282 12,032 11,782 11,632 Commercial.................................................. 13,579 13,977 15,286 16,837 17,337 17,937 18,537 19,017 Farm............................................................. 13,493 14,664 15,359 16,132 16,382 16,632 16,882 17,132 1 Structure of 5 or more units. Note.—Based on data from various institutional and Govt, sources, 2 Includes loans held by nondeposit trust companies but not bank trust with some quarters estimated in part by Federal Reserve in conjunction departments. with the Federal Home Loan Bank Board and the Dept, of Commerce. 3 Includes some U.S. agencies for which amounts are small or separate Separation of nonfarm mortgage debt by type of property, where not data are not readily available. reported directly, and interpolations and extrapolations where required, estimated mainly by Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ REAL ESTATE CREDIT A 45 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION— SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage End of holdings transactions commitments holdings transactions commitments period (during period) (during period) FHA- VA- Pur­ Made Out­ FHA Con­ Pur­ Made Out­ Total i in- guar- chases Sales during stand­ Total VA ven­ chases Sales during stand­ sured anteed period ing tional period ing 1971. 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 182 1972. 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,298 408 i ,606 198 1973. 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 186 1974. 29,578 19,189 8,310 6,953 5 10,765 7,960 4,586 1,904 2,682 2,191 52 4,553 2,390 1974—Jan.. . 24,424 17,008 6,348 350 110 6,715 2,621 1,736 885 34 8 26 161 Feb... 24,529 17,050 6,336 242 489 6,768 2,625 1,730 895 21 6 49 185 Mar... 24,875 17,315 6,340 462 1 1,646 7,913 2,638 1,724 914 29 2 595 748 Apr... 25,263 17,450 6,503 526 1 2,154 9,292 2,722 1,756 967 101 400 1,037 May.. 25,917 17,725 6,794 821 1,145 9,475 2,986 1,827 1,159 281 1,486 2,221 June.. 26,559 17,966 7,079 770 537 9,019 3,191 1,877 1,314 222 628 2,598 July.. 27,304 18,250 7,384 886 1,175 9,044 3,309 1,883 1,426 129 1,127 3,583 Aug... 28,022 18,526 7,704 868 2 1,202 9,115 3,451 1,886 1,565 155 81 3,500 Sept.. 28,641 18,758 7,994 760 997 9,043 3,713 1,896 1,817 273 69 3,278 Oct... 29,139 18,966 8,206 612 878 8,987 4,107 1,910 2,197 410 7 30 2,871 Nov... 29,407 19,083 8,291 379 201 8,532 4.352 1,908 2,445 270 12 28 2,621 Dec... 29,578 19,189 8,310 278 231 7,960 4,586 1,904 2,682 266 16 34 2,390 1975--Jan... 29,670 19,231 8,318 208 146 7,285 i Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms1 Yields (per cent) in insured primary market loans—Yield Period in private Contract Fees and Loan/price Purchase Loan secondary rate (per charges Maturity ratio price (thous. amount market5 cent) (per cent)2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series 3 series4 1970........................... 8.27 1.03 25.1 71.7 35.5 25.2 8.44 8.52 9.03 1971........................... 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972........................... 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.52 1973........................... 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 1974........................... 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 1974—Jan............... 8.33 1.16 26.4 76.3 38.8 28.9 8.52 8.65 Feb................. 8.40 1.33 25.9 76.5 37.8 28.5 8.62 8.55 8.54 Mar................ 8,43 1.35 26.4 77.3 39.1 29.5 8.64 8.60 8.66 Apr................. 8.47 1.21 26.1 77.3 38.5 29.2 8.67 8.90 9.17 May............... 8.55 1.20 25.8 76.8 37.9 28.8 8.74 9.15 9.46 June............... 8.65 1.25 26.3 76.9 39.7 30.1 8.85 9.25 9.46 July................ 8.75 1.28 26.1 74.4 40.5 29.6 8.96 9.40 9.85 Aug................ 8.87 1.32 26.4 75.3 40.2 29.5 9.09 9.60 10.30 Sept................ 8.97 1.30 26.1 74.8 42.4 31.1 9.19 9.80 10.38 Oct................. 8.95 1.37 26.7 74.7 42.3 30.7 9.17 9.70 10.13 Nov................ 9.04 1.40 26.2 73.6 41.3 30.2 9 27 9.55 Dec................. 9.13 1.44 27.5 75.5 42.4 31 .3 9.37 9.45 9.51 1975—Jan.*.............. 9.12 1.51 27.1 75.1 43.0 32.0 9.37 9.15 8.99 1 Weighted averages based on probability sample survey of character­ (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in­ end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed pre­ costs related solely to transfer of property ownership. payment at the end of 15 years. Any gaps in data are due to periods of 3 Effective rate, reflecting fees and charges as well as contract rates adjustment to changes in maximum permissible contract interest rates. NOTE TO TABLE AT BOTTOM OF PAGE A-46: amortization and prepayment terms. Data for the following are limited to cases where information was available or estimates could be made: American Life Insurance Association data for new commitments of capitalization rate (net stabilized property earnings divided by property $100,000 and over each on mortgages for multifamily and nonresidential value); debt coverage ratio (net stabilized earnings divided by debt service); nonfarm properties located largely in the United States. The 15 companies and per cent constant (annual level payment, including principal and account for a little more than one-half of both the total assets and the interest, per $100 of debt). All statistics exclude construction loans, nonfarm mortgages held by all U.S. life insurance companies. Averages, increases in existing loans in a company’s portfolio, reapprovals, and loans Digitized fwohr iFchR aAreS bEaRse d on number of loans, vary in part with loan composition secured by land only. by type and location of property, type and purpose of loan, and loan http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 REAL ESTATE CREDIT □ MARCH 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 1975 Sept. 23 Oct. 7 Oct. 21 Nov. 4 Nov. 18 Dec. 2 Dec. 16 Dec. 30 Jan. 13 Jan. 27 Feb. 10 Feb. 24 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................ 57.2 46.6 34.5 47.8 25.7 52.5 49.6 35.7 25.3 41.4 24.6 36.2 Accepted............................... 38.2 29.7 26.0 24.7 17.6 23.3 43.3 31.8 21.2 28.6 18.1 23.8 Conventional loans Offered i................................. 22.1 26.1 14.1 20.4 20.6 24.0 20.1 17.2 17.9 11.1 14.8 20.0 Accepted............................... 19.0 23.3 12.2 12.1 6.8 12.0 18.5 10.1 14.9 10.6 9.1 9.1 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans........ 10.56 10.32 10.11 9.93 9.81 9.61 9.52 9.47 9.37 9.12 8.98 8.87 Conventional loans.................. 10.66 10.46 10.27 10.11 9.92 9.80 9.72 9.59 9.50 9.39 9.20 9.04 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding require­ paid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Dec. 31, June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Holder 1972 1973 1973 1973 1974 1974 1974 All holders................................................. 131.1 133.6 133.8 135.0 136.7 137.8 138.6 FHA......................................................... 86.4 86.4 85.6 85.0 85.0 84.9 84.1 VA.......................................................... 44.7 47.2 48.2 50.0 51.7 52.9 54.5 Commercial banks...................................... 11.7 11.7 11.7 11.5 11.1 11.0 10.8 FHA......................................................... 8.5 8.5 8.4 8.2 7.8 7.6 7.4 VA............................................................ 3.2 3.2 3.3 3.3 3.3 3.4 3.4 Mutual savings banks................................. 28.6 28.7 28.6 28.4 28.2 27.9 27.7 FHA......................................................... 16.0 15.8 15.7 15.5 15.3 15.1 14.9 VA............................................................ 12.6 12.9 12.9 12.9 12.9 12.8 12.8 Savings and loan assns............................... 28.9 V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 5 . . 5 4 } 29.8 } 30.1 1 29.7 } 29.8 } 29.7 29.8 Life insurance cos........................................ 14.7 14.0 13.7 13.6 13.3 13.1 12.9 ........................................................ 10.0 9.5FHA 9.3 9.2 9.0 8.8 8.7 VA............................................................ 4.7 4.5 4.4 4.4 4.3 4.3 4.2 Others.......................................................... 47.2 49.4 50.0 52.1 54.3 56.1 57.4 FHA......................................................... 36.5 VA............................................................ 10.7 Note.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount Period Number committed Loan Contract Loanof loans (m ( i d l o li l o la n r s s ) of ( o th a f m o d u o o s l u l a a n n r t d s ) s (p in e r t r a e c r te e e s n t t ) (y M rs a . t /m ur o it s y .) (p to e r - a r v t c i a e o l n u t e ) C ( a p t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 197 0 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 197 1 1,664 3.982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 197 2 2,132 4.986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 197 3 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1973—Sept. 176 351.5 1,997 8.94 22/6 73.7 9.3 1.23 10.3 Oct.. 161 203.3 1,263 9.09 22/6 73.6 9.4 1.24 10.3 Nov. 95 313.5 3,300 9.17 22/2 74.3 9.7 1.25 10.4 Dec., 55 152.8 2,778 9.18 23/3 74.8 9.9 1.27 10.3 1974—Jan.. 61 91.5 1,501 9.07 20/11 73.7 9.7 1.24 10.4 Feb.. 90 209.4 2,327 9.10 23/1 73.6 9.8 1.33 10.2 Mar. 117 238.8 2,041 8.99 21/11 74.2 9.6 1.31 10.1 Apr. 141 306.7 2,175 9.02 21/9 73.8 9.9 1.33 10.2 May 148 352.4 2,381 9.31 21/11 74.2 10.0 1.30 10.4 June 147 287.5 1,956 9.35 20/10 75.7 10.1 1.24 10.7 July. 121 234.6 1,939 9.60 20/0 74.1 10.1 1.26 10.8 Aug. 105 312.4 2,975 9.80 22/10 74.3 10.2 1.31 10.7 Sept. 95 241.6 2,543 10.04 20/11 74.4 10.3 1.29 11.1 See Note on p. A-45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ CONSUMER CREDIT A 47 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Charge accounts Auto­ consumer improve­ Personal Single­ Service Total mobile goods ment loans Total payment credit paper paper loans i loans Retail Credit outlets cards2 1965.................... 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 1966.................... 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 1967.................... 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 1968.................... 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 1969.................... 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5,936 1,437 6,921 1970..................... 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 6,163 1,805 7,456 1971..................... 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 6,397 1,953 8,164 1972..................... 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 1973..................... 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1974..................... 190,121 156,124 51,689 52,009 8,162 44,264 33,997 12,979 8,012 2,122 10,884 1974—Jan........... 178,686 146,575 50,617 47,303 7,303 41,352 32,111 13,117 6,894 1,981 10,119 Feb........... 177,522 145,927 50,386 46,781 7,343 41,417 31,595 13,159 6,136 1,882 10,418 Mar.......... 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 6,097 1,842 10,677 Apr........... 179,495 147,047 50,606 47,017 7,573 41,851 32,448 13,315 6,556 1,878 10,699 May......... 181,680 148,852 51,076 47,588 7,786 42,402 32,828 13,331 6,948 1,999 10,550 June......... 183,425 150,615 51,641 48,099 7,930 42,945 32,810 13,311 7,002 2,104 10,393 July.......... 184,805 152,142 52,082 48,592 8,068 43,400 32,663 13,192 6,936 2,204 10,331 Aug.......... 187,369 154,472 52,772 49,322 8,214 44,164 32,897 13,202 6,983 2,282 10,430 Sept.......... 187,906 155,139 52,848 49,664 8,252 44,375 32,767 13,131 6,876 2,277 10,483 Oct........... 188,023 155,328 52,736 49,986 8,287 44,319 32,695 13,003 7,027 2,156 10,509 Nov.......... 188,084 155,166 52,325 50,401 8,260 44,180 32,918 12,950 7,174 2,144 10,650 Dec.......... 190,121 156,124 51,689 52,009 8,162 44,264 33,997 12,979 8,012 2,122 10,884 1975—Jan........... 187,080 153,952 50,947 51,142 8,048 43,815 33,128 12,675 7,162 2,153 11,138 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased CreDdiirtect OtMheorbile loans Check Other loans homes cards credit —•" 1965..................... 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 1966..................... 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 1967..................... 40,630 33,152 10,972 6,232 5,469 2,731 7,'748 7,478 1968..................... 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 1969..................... 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 1970..................... 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 1971..................... 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 1972..................... 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 1973..................... 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1974..................... 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—Jan........... 81,081 69,429 18,885 12,113 7,237 6,826 6,041 3,944 2,167 12,216 11,652 Feb........... 80,909 69,246 18,770 12,028 7,285 6,770 6,063 3,937 2,173 12,220 11,663 Mar.......... 80,918 69,232 18,775 11,985 7,333 6,667 6,082 3,958 2,169 12,263 11,686 Apr........... 81,750 69,944 18,896 12,039 7,399 6,761 6,208 4,028 2,180 12,433 11,806 May......... 82,527 70,721 19,037 12,100 7,491 6,887 6,323 4,135 2,199 12,549 11,806 June......... 83,417 71,615 19,220 12,169 7,564 7,076 6,420 4,224 2,230 12,712 11,802 July.......... 84,078 72,384 19,377 12,250 7,623 7,222 6,484 4,316 2,266 12,846 11,694 Aug.......... 84,982 73,302 19,511 12,344 7,681 7,491 6,541 4,409 2,312 13,013 11,680 Sept.......... 85,096 73,455 19,389 12,314 7,706 7,638 6,527 4,445 2,348 13,088 11,641 Oct........... 84,887 73,372 19,246 12,195 7,709 7,749 6,530 4,480 2,376 13,087 11,515 Nov.......... 84,360 72,896 18,981 12,031 7,700 7,846 6,469 4,490 2,362 13,017 11,464 Dec.......... 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1975—Jan........... 82,986 71,776 18,230 11,581 7,587 8,325 6,323 4,399 2,448 12,883 11,210 See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 CONSUMER CREDIT □ MARCH 1975 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other consumer End of period Auto­ goods paper Home Per­ Mis­ Auto­ Other Total mobile improve­ sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders i dealers outlets Mobile Other loans homes 1965....................... 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 1966....................... 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 1967....................... 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 1968....................... 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 1969....................... 27,846 9,412 5,'775 174 12,485 13,722 12,028 1,694 13,116 250 12,866 1970....................... 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 1971....................... 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 1972....................... 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 1973....................... 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1974....................... 38,925 12,435 3,570 4,751 993 17,176 25,216 22,116 3,100 19,473 286 19,187 1974—Jan.............. 37,140 11,754 3,392 4,460 940 16,594 22,301 19,429 2,872 17,705 296 17,409 Feb.............. 37,148 11,710 3,406 4,486 968 16,578 22,413 19,430 2,983 17,120 293 16,827 Mar............. 37,005 11,624 3,324 4,497 1,018 16,542 22,562 19,550 3,012 16,969 292 16,677 Apr............. 37,291 11,684 3,364 4,547 1,057 16,639 22,753 19,704 3,049 17,059 293 16,766 May............ 37,751 11,810 3,413 4,583 1,097 16,848 23,203 20,053 3,150 17,177 294 16,883 June............ 38,159 11,957 3,449 4,626 1,114 17,013 23,630 20,501 3,129 17,211 296 16,915 July............. 38,479 12,040 3,505 4,664 1,118 17,152 23,968 20,825 3,143 17,311 297 17,014 Aug............. 38,943 12,267 3,539 4,680 1,097 17,360 24,677 21,402 3,275 17,550 299 17.251 Sept............. 38,921 12,345 3,573 4,662 1,073 17,268 25,085 21,792 3,293 17,678 298 17^380 Oct.............. 38,901 12,458 3,597 4,658 1,054 17,134 25,204 21,893 3,311 17,851 296 17,555 Nov............. 38,803 12,462 3,603 4,611 1,021 17,106 25,195 21,975 3,220 18,272 292 17,980 Dec............. 38,925 12,435 3,570 4,751 993 17,176 25,216 22,116 3,100 19,473 286 19,187 1975—Jan.............. 38.340 12,315 3,559 4,642 967 16.857 25,032 21,966 3,066 18,804 282 18,522 i Savings and loan associations and mutual savings banks. See also Note to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies Month New Mobile Other Personal Credit- Automobiles Other automo­ homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1973—Jan.. 10.01 10.54 12.46 12.65 17.13 11.89 16.08 12.51 19.04 21.00 Feb. 10.05 10.76 12.51 12.76 17.16 11.86 16.20 Mar. 10.04 10.67 12.48 12.71 17.19 11.85 16.32 12.54 18.92 20.79 Apr. 10.04 10.64 12.50 12.74 17.19 11.88 16.44 May 10.05 10.84 12.48 12.78 17.22 11.91 16.52 12.73 18.88 20.76 June 10.08 10.57 12.57 12.78 17.24 11.94 16.61 July. 10.10 10.84 12.51 12.75 17.21 12.02 16.75 12.77 18.93 20.55 Aug. 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept. 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 Oct.. 10.53 10.98 12.80 13.02 17.23 12.34 17.11 Nov. 10.49 11.19 12.75 12.94 17.23 12.40 17.21 13.12 18.77 20.65 Dec. 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan.. 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 Feb., 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar. 10.50 10.92 12.82 13.04 17.23 12.29 16.69 13.15 18.69 20.57 Apr. 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.07 18.90 20.57 June 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July. 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.21 19.24 20.78 Aug. 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept. 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.42 19.30 20.93 Oct.. 11.53 11.94 13.28 13.60 17.17 12.97 17.78 Nov. 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 '21.16 Dec. 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan.. 11.62 11.66 13.28 13.60 17.16 13.08 17.27 13.60 19.58 21.24 Note.—Rates are reported on an annual percentage rate basis as specified maturities; finance company rates are weighted averages for specified in Regulation Z (Truth in Lending) of the Board of Governors. purchased contracts (except personal loans). For back figures and descrip­ Commercial bank rates are “most common” rates for direct loans with tion of the data, see Bulletin for Sept. 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ CONSUMER CREDIT A 49 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) Type Holder Period Total Automobile Other Home Personal Commercial Finance Other Retail paper consumer improve­ loans banks companies financial outlets goods paper ment loans lenders Extensions 1966........................... 82,832 27,192 26,329 2,223 27,088 30,073 25,897 10,368 16,494 1967........................... 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 1968........................... 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 1969........................... 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 1970........................... 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 1971........................... 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 1972........................... 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 1973........................... 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1974........................... 166,478 42,756 71,077 4,650 47,995 69,554 41,809 24,510 30,605 1974—Jan................. 13,714 3,492 5,662 373 4,187 5,715 3,693 1,911 2,395 Feb................. 13,541 3,389 5,647 409 4,096 5,794 3,656 1,861 2,230 Mar................ 13,823 3,484 5,933 424 3,982 5,710 3,497 1,976 2,640 Apr................. 14,179 3,545 6,034 447 4,153 5,838 3,671 2,054 2,616 May............... 14,669 3,769 6,156 468 4,276 6,023 3,832 2,140 2,674 June............... 14,387 3,731 6,043 425 4,188 6,076 3,729 2,040 2,542 July................ 14,635 3,812 6,164 416 4,243 6,129 3,685 2,201 2,620 Aug................ 14,394 3,887 5,993 388 4,126 6,034 3,476 2,290 2,594 Sept................ 14,089 3,835 5,935 302 4,017 6,050 3,408 2,079 2,552 Oct................. 13,626 3,369 5,948 348 3,961 5,600 3,229 2,160 2,637 Nov................ 12,609 3,062 5,700 321 3,526 5,390 2,823 1,863 2,533 Dec................. 12,702 3,205 5,798 294 3,405 5,012 3,240 1,901 2,549 1975—Jan................. 12,859 3,348 5,430 289 3,792 5,368 3,068 2,048 2,375 Repayments 1966........................... 77,480 25,619 24,080 2,118 25,663 27,716 24,952 9,342 15,470 1967........................... 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 1968........................... 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 1969........................... 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 1970........................... 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20,742 1971........................... 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 1972........................... 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 1973........................... 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1974........................... 157,791 42,197 66,598 3,840 45,156 66,539 40,127 21,861 29,264 1974—Jan................. 12,797 3,433 5,193 356 3,815 5,254 3,418 1,823 2,302 Feb................. 12,870 3,394 5,340 323 3,813 5,430 3,423 1,692 2,325 Mar................ 13,206 3,544 5,596 308 3,758 5,479 3,452 1,827 2,448 Apr................. 13,026 3,498 5,483 312 3,733 5,470 3,375 1,784 2,397 May............... 13,407 3,601 5,607 315 3,884 5,573 3,528 1,855 2,451 June............... 13,301 3,577 5,615 335 3,774 5,564 3,405 1,835 2,497 July................ 13,310 3,563 5,610 320 3,817 5,541 3,513 1,819 2,437 Aug............... 12,882 3,443 5,444 309 3,686 5,463 3,166 1,851 2,402 13,412 3,604 5,700 279 3,829 5,808 3,371 1,723 2,510 Oct................. 13,224 3,470 5,499 321 3,934 5,542 3,250 1,962 2,470 Nov................ 13,009 3,423 5,561 325 3,700 5,671 2,981 1,860 2,497 Dec................. 13,516 3,668 6,037 341 3,470 5,803 3,308 1,822 2,583 1975—Jan................. 13,260 3,534 5.549 336 3,841 5,669 3,331 1 .827 2,433 Net change 1966........................... 5,352 1,573 2,249 105 1,425 2,357 945 1,026 1,024 1967........................... 3,183 -214 1,657 167 1,573 1,833 -220 901 669 1968........................... 8,317 3,152 2,237 231 2,697 4,784 1,498 1,501 534 1969........................... 9,360 2,579 3,687 374 2,720 4,485 1,772 2,005 1,098 1970........................... 4,959 -343 3,152 457 1,693 2,977 -168 1,366 784 1971........................... 9,231 3,480 2,888 343 2,520 5,842 1,205 1,933 251 1972........................... 16,037 5,465 5,727 788 4,057 8,543 3,205 2,490 1,799 1973........................... 20,105 7,001 7,450 1,151 4,503 9,712 5,155 3,056 2,182 1974........................... 8,687 559 4,479 810 2,839 3,015 1,682 2,649 1,341 1974—Jan................. 917 59 469 17 372 461 275 88 93 Feb................. 671 -5 307 86 283 364 233 169 -95 Mar................ 617 -60 337 116 224 231 45 149 192 Apr................. 1,153 47 551 135 420 368 296 270 219 May............... 1,262 168 549 153 392 450 304 285 223 June............... 1,086 154 428 90 414 512 324 205 45 July................ 1,325 249 554 96 426 588 172 382 183 Aug................ 1,512 444 549 79 440 571 310 439 192 Sept................ 677 231 235 23 188 242 37 356 42 Oct................. 402 -101 449 27 27 58 -21 198 167 Nov................ -400 -361 139 -4 -174 -281 -158 3 36 Dec................. -814 -463 -239 -47 -65 -791 -68 79 -34 1975—Jan................. -401 -186 -119 -47 -49 -301 -263 221 -58 Note.—Monthly estimates are seasonally adjusted and include adjust­ stalment paper, and certain other transactions may increase the amount ments for differences in trading days. Annual totals are based on data of extensions and repayments without affecting the amount outstanding. not seasonally adjusted. For back figures and description of the data, see “Consumer Credit,” Digitized foErs tFimRaAteSs EarRe based on accounting records and often include finance Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, charges. Renewals and refinancing of loans, purchases and sales of in­ and Bulletins for Dec. 1968 and Oct. 1972. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 INDUSTRIAL PRODUCTION: S.A. □ MARCH 1975 MARKET GROUPINGS (1967= 100) 1 p 9 r 6 o 7 ­ a 1 v 9 e 7 r 4 ­ 1974 1975 Grouping por­ age tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.* Feb.* Total index................................... 100.0 124.1 124.6 124.7 124.9 125.7 125. 125.5 125.2 125.6 124.8 121.7 117.7 113.7 110.3 Products, total.................................. 62.21 123.1 122.4 122.6 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.5 115.7 113.0 Final products............................... 48.95 121.7 120.6 121.0 120.8 122.4 122.6 122. 122.1 122.6 122.3 120.9 118.1 115.0 112.5 Consumer goods...................... 28.53 128.8 128.3 128.5 128.5 129.7 130.2 130.0 129.8 128.8 128.2 126.3 123.2 120.1 117.9 Equipment................................ 20.42 111.8 109.9 110.1 110.1 112.2 112.0 113.0 111.4 113.8 114.0 113.2 110.8 108.0 105.2 Intermediate products.................. 13.26 128.3 129.1 128.2 129.4 129.2 128.9 127. 128.6 127.6 125.3 123.0 120.1 118.4 115.1 Materials........................................... 37.79 127.4 128.3 128.8 128.7 129.1 128.8 128.0 128.5 129.3 128.1 122.1 116.3 110.4 106.2 Consumer goods Durable consumer goods.................. 7.86 128.1 126.4 128.5 130.9 132.8 133.5 131.6 131.8 129.1 126.5 119.7 110.5 105.4 101.0 Automotive products.................. 2.84 110.4 106.6 108.0 113.8 116.1 117.3 113.5 114.9 111.6 114.7 102.1 87.5 82.8 78.1 Autos......................................... 1.87 94.9 86.4 86.3 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91.0 69.8 62.6 59.2 Auto parts and allied goods... .97 140.1 145.5 149. 144.7 146.5 151.3 136.9 137.6 134.5 126.9 123.6 121.5 121.6 118.6 Home goods..................................... 5.02 138.1 137.5 140.1 140.6 142.3 142.7 141.8 141.2 139.0 133.2 129.7 123.5 118.2 114.0 Appliances, TV, and radios........ 1.41 132.1 131.9 135.8 135.2 137.7 141 139.3 139.1 133.2 120.9 115.3 103.0 93.4 Appliances and A/C............ .92 149.0 148.2 150.0 148.6 152.6 155.3 151.7 156.2 150.2 139.5 131.9 120.8 106.3 TV and home audio............. .49 100.3 Carpeting and furniture.............. 1. 153.5 153.3 154.5 158.2 157.4 157.2 155.3 157.1 155.4 151.8 144.7 143.8 140.7 Misc. home goods....................... 2.53 135.0 134.2 136.3 136.0 138.3 137.4 137.3 135.8 135.3 132.2 131.4 126.2 122.5 117.1 Nondurable consumer goods............ 20.67 129.1 129.1 128.7 127.6 128.5 129.0 129.4 129.1 128.7 128.9 128.8 128.1 125.6 124.4 Clothing........................................ 4.32 109.0 114.5 112.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 101.8 Consumer staples......................... 16.34 134.4 133.0 133.1 133.2 134.2 134.3 134.9 135.1 134 135.4 135.6 135.1 133.9 132.9 Consumer foods and tobacco., 8.37 125.4 125.9 125.7 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.2 125.1 124.5 Nonfood staples....................... 7.98 143.6 140.4 140.8 143.1 144.3 144.4 144.7 146.5 145.7 146.1 145.3 145.5 143.2 141.7 Consumer chemical products 2.64 158.1 159.0 160.3 159.7 157.5 156. 154.6 159.0 157.7 159 155.2 158.6 156.5 Consumer paper products... 1.91 125.5 119.9 119.1 119.4 124.7 123.9 124.4 129.5 130.9 128.5 127.4 126.7 124.1 Consumer fuel and lighting., 3.43 143.0 137.4 138.2 143.7 145.1 146.0 148.4 146.2 144.6 145.4 147.9 146.0 143.5 Residential utilities........... 2.25 152.5 148.6 149.0 151.6 153.2 155.3 157. 155.4 156.2 155.5 159.3 156.9 Equipment Business equipment........................... 12.74 129.5 127.3 127.6 127.9 130.2 130.2 131.3 128.8 132.3 132.0 131.0 127.2 122.5 119.4 Industrial equipment.................... 6.77 128 126.6 126.8 127.6 129.6 129.0 130.3 129.6 132.0 130.9 129.3 126 123.9 120.9 Building and mining equip. 1.45 136.0 130.3 131.3 133.5 135.0 137.4 136.2 136.5 139.8 141.2 140.1 137.9 138.1 136.9 Manufacturing equipment. 3.85 121.8 120.6 121.1 122.1 124.1 121.9 124.9 123.1 124.4 122.5 119.4 116.5 114.1 111.4 Power equipment..................... 1.47 139.9 138.7 137.3 136.6 138.4 139.0 138.4 139.6 144.2 142.8 144.5 142.6 135.5 129.8 Commercial, transit, farm eq.... 5.97 130.2 128.2 128.7 128.2 130.9 131.5 132.5 127.6 132.8 133.2 132.9 127. 121.0 117.8 Commercial equipment............ 3.30 141.2 139.8 140. 140.4 141.5 142.7 143.5 134.0 143.3 144.1 143.1 139.6 133.6 129.9 Transit equipment.................... 2.00 109.4 109.3 109.4 106.7 110.2 110.4 111.4 109.3 111.8 111.2 109.8 102.9 93.1 93.4 Farm equipment....................... .67 138.3 126.0 126.1 131.2 140.2 140.6 141.4 150.5 144.1 145.4 151.9 143.7 142.0 Defense and space equipment.......... 7.68 82.4 80.9 81.0 80.6 82.2 81.7 82.6 82.7 83.1 84.1 83.7 83.5 83.6 81.6 Military products......................... 5.15 81.2 80.2 80.5 19.9 81.2 79.7 81.4 81.5 82.3 82.5 81. 81.5 81.4 79.9 Intermediate products Construction products..................... 5.93 129.6 131.3 129.6 130.8 130.8 129.6 128.2 128.0 127.4 123.5 121 .3 118.5 117.2 112.0 Misc. intermediate products............ 7.34 127.3 127.4 127.5 128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 121.6 119.5 Materials Durable goods materials.................... 20.91 127.6 127.3 127.2 127.3 128.3 127.5 125 128.1 129.2 129.3 123.5 116.7 110.3 105.0 Consumer durable parts............... 4.75 112.1 109.3 110.6 112.5 114.7 114.1 117.2 117.5 117.2 115.2 104.1 91.1 83.8 80.3 Equipment parts............................ 5.41 123.8 122.6 121.6 120.1 122.5 122.1 120.6 125 125.0 124.0 122.2 118.3 116.5 110.0 Durable materials nec................... 10.75 136.3 137.6 137.5 137.5 137.2 136.2 132.3 133.9 136.6 138.3 132.7 126.9 118.7 113.4 Nondurable goods materials............... 13.99 128.3 131.1 131.9 131.9 130.9 131.3 131.1 130.4 129.3 126.8 122.1 116.5 109.0 105.4 Textile, paper, and chem. mat..., 8.58 139.4 141.7 143.1 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 123.1 112.0 107.7 Nondurable materials n.e.c.......... 5.41 110.6 114.3 114.7 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.9 104.2 101.5 Fuel and power, industrial............... 2.89 122.6 122.5 122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.1 119.2 117.8 Supplementary groups Home goods and clothing................ 9.34 124.6 126.9 127.0 124.6 126.0 127.1 126.4 125.0 123.8 120.0 117.4 113.4 107.0 103.7 Containers.......................................... 1.82 139.3 144.3 151.4 147.0 141.5 141.6 142.1 140.4 136.7 131.5 127.6 120.3 118.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total............................. 286.3 442.5 443.9 445.4 449.5 449.7 448.1 446.9 447.1 445.7 439.0 426.5 417.8 408.6 Final products........................ 221.4 339.9 342.3 342.9 347.2 341.1 346.6 345.0 346.1 346.5 341.3 330.6 322.7 316.6 Consumer goods................ 156.3 230.6 232.7 233.8 235.9 236.6 235.0 235.1 233.1 233.7 228.9 221.9 217.0 213.1 Equipment........................... 65.3 109.1 109.4 109.0 111 .2 111.2 111.6 109.9 112.8 112.7 112.4 109.0 105.7 103.4 Intermediate products............ 64.9 102.6 101.9 102.5 102.2 102.0 101.2 102.1 101.0 99.4 97.4 95.8 94.8 92.0 For Note see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) 1 p 9 r 6 o 7 ­ 1974 1974 1975 Grouping p ti o o r n ­ a a v g e e r­ Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.® Feb.e Manufacturing.......... 88.55 124.4 124.5 124.6 124 125.7 125.6 125.2 125 125.5 124.6 120.9 116.3 112.2 108.9 Durable................ 52.33 120. 119.4 120.4 120.7 122.1 122.1 121.6 121.6 122.1 121.6 117.9 112.3 108.1 104.1 Nondurable.......... 36.22 129.7 131.5 130.9 130.4 130.9 130. 130. 130 130.5 128 125 122.0 118.3 116.0 Mining and utilities. 11.45 127.0 126.9 127.3 127. 128.0 128.1 128.9 127.4 128.7 128.5 125.9 125.3 125.3 124.8 Mining.................. 6.37 109.3 111.7 112.2 111.3 111.0 110.2 110.2 107.3 109.2 110 105.0 105.1 108.9 108.0 Utilities................ 5.08 149.2 146.1 146.5 148.7 149 150.6 152.4 152 153.1 151.2 152.3 150.7 145.7 145.8 Durable manufactures Primary and fabricated metals... . 12.55 127.8 127.6 128.2 127.5 128 ,128.4 126.9 126.5 127.2 127.6 124.4 116.5 111.8 107.3 Primary metals................................. 6.61 124.5 125.0 125.3 124.0 124.6 124.7 123.2 121.9 123.0 126.0 121.0 109.8 105.0 101.4 Iron and steel, subtotal.......... 4.23 120.2 119.4 119.6 116.4 118.0 118.5 119.9 120.7 119.1 123.9 117.7 107.9 105.5 104.3 Fabricated metal products........ 5.94 131 130.6 131.6 131.3 131.9 132.5 131.1 131.5 132.0 129.6 128 124.1 119.7 113.9 Machinery and allied goods............ 32.44 116.3 113 114. 115.5 117.5 117.7 117.3 117. 118.8 118.4 114.9 109.5 105. 101.4 Machinery................................... 17.39 129.7 127.2 128. 128.2 129.7 130.4 129.9 130.5 132.5 131.1 128.9 124.6 119.4 114.8 Nonelectrical machinery........ 9.17 133.7 128.1 129. 130.7 131.9 131.7 131.1 136.4 137.8 137.4 135 132.1 127.0 121.7 Electrical machinery.............. 8.22 125.2 126.2 126. 125.3 127.4 129.0 128.4 123.7 126.4 124.0 121.7 116.3 111 .0 107.0 Transportation equipment........ 9.29 96.9 93.9 95.0 97.8 100.6 99.4 98.7 99.9 100.4 102.1 93.7 83.6 79.6 76.0 Motor vehicles and parts.... 4.56 113.1 109.2 110.2 116.4 119.6 116.9 117.3 117.8 118.6 123.0 107.1 86.4 78.6 74.9 Aerospace and misc. trans. eq... 4.73 81.2 79.3 80.3 80.0 82.4 82.6 80.9 82.6 82.8 81.9 80.9 80.9 80.5 77.2 Instruments................................. 2.07 143.8 142. 142. 143.8 146.1 147 146.7 146.7 144.9 142.0 142.3 138.5 137.9 132.0 Ordnance, private and Govt.... 3.69 86.2 84.2 84.9 84.3 86.1 86.4 87.2 87.1 87.5 87.2 86 86.9 85. 85.2 Lumber, clay, and glass..................... 4.44 123. 127.4 128.1 128.9 128.0 126.4 125.5 123.4 120.6 117.8 113.7 111.4 108.4 104.5 Lumber and products.................... 1.65 120.1 127.1 126.1 126.8 126. 125.6 121.6 121.5 116.6 109.3 105.2 101.0 95.6 Clay, glass, and stone products... 2.79 125.9 127.6 129.3 130.3 128.7 126.9 127.7 124.6 123.0 122.9 118.8 117 114.0 Furniture and miscellaneous.... 2.90 136.2 135.2 136.8 136. 138.9 138.5 139.7 140.1 138.8 136.7 129.0 128 121.5 120.2 Furniture and fixtures.......... 1.38 127.0 125.4 126. 128. 129.7 131.1 131.6 130.5 129.4 125.5 120.5 120.4 114.3 .......... Miscellaneous manufactures. 1.52 144.6 144.2 145. 144.1 147.3 145.3 147.1 148.8 147.5 146.9 136.9 135.7 128.0 .......... Nondurable manufactures Textiles, apparel, and leather. 6.90 108.5 115.3 112.4 109.3 109.8 108.5 108.1 107.4 106.5 105.1 101.9 96.4 89.9 87.7 Textile mill products.......... 2.69 123.0 127.6 125.0 123.4 124.0 125.1 125.3 124.3 121.9 119.1 112.8 105.6 96.2 Apparel products................ 3.33 105.0 113.6 110.0 105. 105.0 102.1 102.7 102.5 102.5 102.8 100.1 96.0 Leather and products......... .88 77.6 83.7 83.0 79.5 83.9 81.6 75.7 73.4 74.2 70.6 74.7 69.7 64.4 Paper and printing............ 7.92 121.0 122.2 122.5 121.2 121.3 122.3 122.4 121.0 122.7 120.8 115.7 112.4 108.6 105.8 Paper and products 3.18 133.9 137.6 140.2 135.4 135.1 136.7 136.1 132.2 135.3 133.9 124.3 116.3 108.5 Printing and publishing. 4.74 112.3 111.9 110.7 111.7 111.9 112.7 113.4 113.4 114.4 111.9 110.0 109 108.5 106.6 Chemicals, petroleum, and rubber.... 11.92 151.7 151.2 151.3 153.5 153.0 153.7 153.9 154.4 154.7 152.4 146.5 141 137.7 133.9 Chemicals and products.................. 7.86 154.3 155.3 155.5 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.4 139.4 137.1 Petroleum products......................... 1.80 124.1 116.9 117.3 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 126.2 126.3 123.2 Rubber and plastics products......... 2.26 164.6 163.5 164.2 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 149.2 141.0 Foods and tobacco.., 9.48 124.7 126.2 125.3 124.3 126.5 125.3 124. 124 124.3 123.7 123. 123.6 123.0 122.4 Foods.................... 8.81 126.1 127.2 126.5 125.9 127. 127.1 126.6 126.3 125.7 124. 125.4 125.6 125.1 124.5 Tobacco products. .67 107.0 112.1 110, 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103. 96.2 Mining Metal, stone, and earth minerals., 1.26 117.1 119.9 119.7 117.5 117.9 112.4 113.5 109.9 115.4 121.3 120.7 117.9 117.8 115.2 Metal mining............................ .51 129.0 132.2 132.9 127.4 128.1 121.1 120.3 110.0 130.5 141.4 136.8 134.7 131.9 Stone and earth minerals........ .75 109.0 111.6 110.7 110.7 111.0 106.4 108.8 109.9 105.0 107.5 109.8 106.4 108.2 Coal, oil, and gas............ 5.11 107.3 109.6 110.2 109.8 109.2 109.7 109.4 106.7 107.7 107.8 101.2 102.0 106.7 106.3 Coal............................. .69 104.8 112.7 114.7 110.3 112.4 118.3 115.6 99.4 112.1 110.3 67.6 81.7 111.5 113.0 Oil and gas extraction. 4.42 107.7 109.1 109.5 109.7 108.8 108.4 108.4 107.9 107.1 107.4 106.4 105.2 105.9 105.2 Utilities Electric. 3.91 158.6 154.6 155.1 158.3 159.0 160.3 162.7 162.8 162.4 161.2 162.9 160.7 Gas...., 1.17 117.9 Note.—Data for the complete year of 1972 are available in a pamphlet Published groupings include series and subtotals not shown sepa- Industrial Production Indexes 1972 from Publications Services, Division rately. Figures for individual series and subtotals are published in the of Administrative Services, Board of Governors of the Federal Reserve monthly Business Indexes release. System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 BUSINESS ACTIVITY; CONSTRUCTION □ MARCH 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry u p t a il c iz it a y ­ Con­ N ri o c n u a l g ­ - Period Total Total C Fi o n P n a r ­ l oducts m In ed te ia r­ te M ri a a t l e s ­ f M a i c a n t n g u u r­ ­ i o = t n ( i u 1 o m 1 t 9 n p 0 6 f u 0 g 7 ) t . t s r c t t a r i o o u c n n t c s ­ ­ T m p t e o u e l m o t r n a a y t ­ l l — ­ i p m E lo m en y ­ t ­ P ro a l y ls ­ T s r a e o l t e t a a s i l l 3 s C um on e ­ r m W c s o o a h m d l o e i l ­ t e y ­ Total sumerEquip­ goods ment 1955..................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956..................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957..................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93' 3 1958..................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94^6 1959..................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87! 3 94^8 I960..................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961..................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962..................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94 8 1963..................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.*5 1964..................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965..................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966..................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967..................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968..................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969..................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970..................... 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 1971..................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 1972..................... 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973..................... 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 1974..................... 124.8 123.1 121.7 128.8 111.8 128.3 127.4 124.4 168.6 118.9 102.1 156.6 147.7 160.1 1974—Jan........... 125,4 122.9 121.2 129.2 109.8 129.2 129.7 125.3 i 155.0 118.3 104.0 '154.5 164 139.7 146.6 Feb........... 124.6 122.4 120.6 128.3 109.9 129.1 128.3 124.5 80.5 187.0 118.5 103.2 '152.5 165 141.5 149.5 Mar.......... 124.7 122.6 121.0 128.5 110.1 128.2 128.8 124.6 I 181.0 118.6 102.9 '153.1 168 143.1 151.4 Apr........... 124.9 122.7 120.8 128.5 110.1 129.4 128.7 124.8 j 167.0 118.8 103.0 '150.4 169 143.9 152.7 May......... 125.7 123.8 122.4 129.7 112.2 129.2 129.1 125.7 \ 80.1 188.0 119.0 103.0 '156.2 172 145.5 155.0 June......... 125.8 124.0 122.6 130.2 112.0 128.9 128.8 125.6 J 166.0 119.1 103.2 '157.9 170 146.9 155.7 July.......... 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 119.2 103.0 '159.5 177 148.0 161.7 Aug.......... 125.2 123.5 122.1 129.8 111.4 128.6 128.5 125.2 \ 79.4 170.0 119.4 102.6 '161.5 180 149.9 167.4 Sept.......... 125.6 123.6 122.6 128.8 113.8 127.6 129.3 125.5 J 187.0 119.7 102.5 '162.0 176 151.7 167.2 Oct........... 124.8 122.9 122.3 128.2 114.0 125.3 128.1 124.6 I 148.0 119.8 101.7 '162.1 175 153.0 170.2 Nov.......... 121.7 121 .4 120.9 126.3 113.2 123.0 122.1 120.9 75.9 154.0 119.1 99.4 '157.0 170 154.3 171.9 Dec........... 117.7 118.5 118.1 123.2 110.8 120.1 116.3 116.3 176.0 118.0 96.3 '152.6 171 155.4 171.5 1975—Jan........... 113.7 115.7 115.0 120.1 108.0 118.4 110.4 112.2 135.0 117.2 93.5 148.8 '175 156.1 171.8 Feb........... 110.3 113.0 112.5 117.9 105.2 115.1 106.2 108.9 116.2 90.7 142.6 176 171.3 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Company 2 Production workers only. Revised back to 1968. F.W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering; 4 Prices are not seasonally adjusted. Latest figure is final. does not include data for Alaska and Hawaii. Note.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; Capacity utilization: Based on data from Federal Reserve, McGraw- includes data for Alaska and Hawaii beginning with 1959. Hill Economics Department, and Dept, of Commerce. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1974 1975 Type of ownership and 1973' 1974 type of construction Jan.' Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. rotal construction contracts 1........ 99,304 93,076 5,847 6,610 7,911 8,929 10,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 By type of ownership: Public........................................ 26,563 32,209 2,070 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 Private 1.................................... 72,741 60,867 3,776 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 By type of construction: Residential building 1.............. 45,696 34,174 2,218 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 Nonresidential building........... 31,534 33,859 2,274 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 Nonbuilding............................. 22,074 25,042 1,355 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 Private housing units authorized... 1,829 1,053 1,282 1,325 1,410 1,296 1,120 1,106 1,017 900 823 782 730 822 661 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, NorE.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im­ McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data exceed annual totals because adjustments— cent for total and private construction, in each case, and by 8 per cent for negative—are made in accumulated monthly data after original figures residential building. have been published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Resi­ Buildings Mili­ High­ vation Total dential Total Indus­ Com­ Other Other Total tary way de m v an e e d n lo t p­ Other 2 trial mercial build­ ings 1 1965 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 93,728 65.404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 15,489 197 1 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,077 93,893 54,288 39,605 4.676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 197 3 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 197 4 134,506 96,124 54,740 41,384 7,745 16,029 5,951 11.659 38,382 1,188 1974—Feb.. 136,282 98,770 48,873 49,897 7,869 16,650 6,143 19,235 37,512 1,361 12,465 2,510 21,176 Mar., 135,069 98,631 48,643 49,988 7,500 16,652 6,336 19,500 36,438 1,401 10,985 2,463 21,589 Apr.. 136,399 97,445 '48,164 49,281 6,920 16,296 6,264 19,801 38.954 1,505 12,209 2,665 22,575 May. 138,163 97,889 47,971 49,918 7,606 16,408 5,890 20,014 40,274 1,181 12,322 2,692 24,079 June. 136,889 98.404 48,269 50,135 8,027 16,425 6,034 19,649 38,485 1,169 11,632 3,306 22,378 July. 137,935 97,980 48,938 49,042 7,158 15,953 5,915 20,016 39.955 1,131 Aug.. 134,503 96,303 48,284 48,019 7,616 15,053 5,691 19.659 38,200 978 Sept.. 132,891 94,591 45,858 48,733 7.677 15,668 5,776 19.612 38,300 1,167 Oct.r 133,043 94,177 43,311 50,866 8,294 16,300 5,799 20,473 38,866 1,065 Nov. 129,724 92,123 40,950 51,173 8,670 16,037 5,854 20.612 37,601 Dec.. 131,560 89,987 39,024 50,963 8,774 15,372 5,781 21,036 41,573 1975—Jan.* 128,087 88,429 37,154 51,275 8,486 15,390 5,896 21,503 39,658 * Includes religious, educational, hospital, institutional, and other build­ Note.—Census Bureau data; monthly series at seasonally adjusted ings. annual rates. 2 Sewer and water, formerly shown separately, now included in “Other.” PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Units Median prices (in thousands Mobile of dollars) of Period home units 1- 2-or- 1- 2-or- 1- 2-or- ship­ Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale per­ iod) 1965........................................ 1,473 964 509 217 575 228 20.0 21.3 1966........................................ 1,165 779 386 217 461 196 21.4 22.8 1967........................................ 1,292 844 448 240 487 190 22.7 23.6 1968........................................ 1,508 899 608 1,320 859 461 318 490 218 24.7 24.6 1969........................................ 1,467 811 656 1,399 808 592 885 350 535 413 448 228 25.6 27.0 1970........................................ 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 1971........................................ 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 1972........................................ 2,357 1,309 1,048 1,972 1,143 828 1,586 640 947 576 718 416 27.6 28.3 1973........................................ 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 1974........................................ 1,338 888 450 1,689 930 759 1,194 519 676 371 500 408 35.9 36.2 1974—Jan.'........................... 1,437 803 634 1,916 1,026 890 1,608 599 1,009 469 474 450 34.2 33.4 Feb.'........................... 1,881 1,046 835 1,891 1,018 873 1,611 601 1,010 449 516 459 34.9 33.5 Mar.r.......................... 1,511 969 542 1,885 973 912 1,567 597 970 475 585 453 36.0 34.0 Apr.r........................... 1,580 975 605 1,695 883 812 1,545 600 945 435 570 449 35.7 34.3 Mayr........................... 1,467 925 542 1,677 882 795 1,512 594 918 451 599 441 35.7 34.7 Juner........................... 1,533 1,000 533 1,851 1,092 759 1,480 581 899 441 532 435 35.1 35.0 Julyr........................... 1,314 920 394 1,674 935 739 1,443 578 865 380 511 431 36.8 35.3 Aug.r.......................... 1,156 826 330 1,505 899 607 1,406 570 836 370 457 433 35.7 35.5 Sept.r.......................... 1,157 845 312 1,505 882 624 1,372 565 807 316 500 414 36.2 35.7 Oct.r........................... 1,106 792 314 1,633 922 712 1,322 553 769 248 412 409 37.2 35.9 Nov.r.......................... 1,017 802 215 1,648 874 761 1,259 544 715 218 423 403 37.2 36.0 Dec.............................. 874 676 198 1,582 836 746 1,230 546 684 216 364 401 37.5 36.2 1975—Jan............................... 987 743 244 215 1 Merchant builders only. for mobile homes, which are private, domestic shipments as reported by the Mobile Home Manufacturers* Assn. and seasonally adjusted by Note.—All series except prices, seasonally adjusted. Annual rates for Census Bureau. Data for units under construction seasonally adjusted by starts, completions, mobile home shipments, and sales. Census data except Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 EMPLOYMENT □ MARCH 1975 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a u t .S u l l a t . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e r . l ) Total Total E In m c n u p o l l t n o u a y ra g e l r d i- 1 In U pl n o e y m ed ­ U (p n e m e r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ agriculture industries 1969........................... 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973........................... 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1974........................... 150,827 57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 1974—Feb................. 149,857 58,165 92,809 90,551 85,861 82,050 3,811 4,690 5.2 Mar................ 150,066 58,183 92,632 90,381 85,779 82,126 3,653 4,602 5.1 Apr................ 150,283 58,547 92,567 90,324 85,787 82,272 3,515 4,537 5.0 May............... 150,507 58,349 92,982 90,753 86,062 82,565 3,497 4,691 5.2 June............... 150,710 55,952 93,069 90,857 86,088 82,755 3,333 4,769 5.2 July................ 150,922 55,426 93,503 91,283 86,403 82,970 3,433 4,880 5.3 Aug................ 151,135 56,456 93,419 91,199 86,274 82,823 3,451 4,925 5.4 Sept................ 151,367 57,706 93,922 91,705 86,402 82,913 3,489 5,303 5.8 Oct................. 151,593 57,489 94,058 91,844 86,304 82,864 3,440 5,540 6.0 Nov................ 151,812 57,991 93,921 91,708 85,689 82,314 3,375 6,019 6.6 Dec................ 152,020 58,482 94,015 91,803 85,202 81,863 3,339 6,601 7.2 1975—Jan................. 152,230 58,888 94,284 92,091 84,562 81,179 3,383 7,529 8.2 Feb................. 152,445 59,333 93,709 91,511 84,027 80,701 3,326 7,484 8.2 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ Tr ti a p o n u n s b p l a o i n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 1969......................................................... 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 1971......................................................... 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973......................................................... 76,833 20,054 638 4,028 4,646 16,665 4,075 12,986 13,742 1974......................................................... 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 SEASONALLY ADJUSTED 1974—Feb............................................... 78,053 20,155 661 4,127 4,717 16,871 4,142 13,313 14,067 Mar.............................................. 78,089 20,116 662 4,102 4,708 16,914 4,145 13,339 14,103 Apr............................................... 78,226 20,147 665 4,087 4,704 16,945 4,154 13,367 14,157 May.............................................. 78,357 20,151 668 4,066 4,701 16,994 4,161 13,429 14,187 June.............................................. 78,421 20,184 669 3,994 4,698 17,031 4,156 13,488 14,201 July.............................................. 78,479 20,169 675 3,920 4,693 17,107 4,157 13,516 14,242 Aug............................................... 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 78,844 20,112 682 3,939 4,679 17,166 4,176 13,647 14,443 Oct................................................ 78,865 19.982 692 3,911 4,699 17,160 4,185 13,705 14,531 Nov............................................... 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 Dec............................................... 77,690 19,146 662 3,798 4,668 16,912 4,182 13,734 14,588 1975—Jan................................................ 77,166 18,709 702 3,781 4,607 16,838 4,174 13,733 14,622 Feb.®............................................ 76,558 18,282 710 3,587 4,583 16,813 4,162 13,753 14,668 NOT SEASONALLY ADJUSTED 1974—Feb............................................... 77,011 19,971 646 3,702 4,651 16,513 4,105 13,153 14,270 Mar.............................................. 77,362 19,962 648 3,786 4,670 16,584 4,120 13,246 14,346 Apr............................................... 77,994 20,011 659 3,919 4,671 16,851 4,137 13,380 14,366 May.............................................. 78,545 20,063 669 4,058 4,701 16,964 4,161 13,536 14,393 June.............................................. 79,287 20,345 684 4,190 4,759 17,108 4,202 13,677 14,322 July.............................................. 78,322 20,066 688 4,187 4,740 17,064 4,219 13,665 13,693 Aug............................................... 78,561 20,288 690 4,286 4,734 17,058 4,222 13,668 13,615 Sept.............................................. 79,097 20,350 688 4,191 4,721 17,153 4,180 13,647 14,167 Oct................................................ 79,429 20,142 693 4,150 4,718 17,225 4,172 13,719 14,610 Nov............................................... 79,125 19,763 693 3,981 4,702 17,342 4,309 13,707 14,771 Dec............................................... 78,441 19,175 657 3,722 4,663 17,591 4,161 13,665 14,807 1975—Jan................................................ 76,126 18,529 691 3,365 4,552 16,662 4,132 13,500 14,695 Feb.®............................................ 75,601 18,117 694 3,221 4,519 16,456 4,125 13,588 14,881 Note.—Bureau of Labor Statistics; data include all full- and part- domestic servants, unpaid family workers, and members of Armed time employees who worked during, or received pay for, the pay period Forces are excluded. that includes the 12th of the month. Proprietors, self-employed persons, Beginning with 1968, series has been adjusted to Mar. 1973 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ PRICES A 55 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow o n m e e r - - F a o n u i e d l l e G a l n e a d c s ­ n i a n i n s g h d s ­ up a k n e d ep p t o io rt n a­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O a o t n o h d d e s r ship coal tricity opera­ care care recrea­ serv­ tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945.......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960.......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965.......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970.......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971......................... 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972.......................... 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973......................... 133.1 141.4 135.0 M24.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974......................... 147.7 161.7 150.6 130.2 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1974—Jan................ 139.7 153.7 142.2 127.3 154.8 194.6 134.3 129.0 128.8 128.1 133.7 142.2 129.8 128.3 131.8 Feb................ 141.5 157.6 143.4 128.0 155.8 202.0 137.3 130.1 130.4 129.3 134.5 143.4 130.8 128.9 132.3 Mar............... 143.1 159.1 144.9 128.4 157.2 201.5 140.0 132.6 132.2 132.0 135.4 144.8 131.8 129.5 132.8 Apr................ 143.9 158.6 146.0 128.8 158.2 206.5 141.9 134.0 133.6 133.7 136.3 145.6 133.1 130.4 133.6 May.............. 145.5 159.7 147.6 129.3 159.4 211.0 143.9 137.0 135.0 136.3 137.7 147.2 134.9 132.0 134.4 June.............. 146.9 160.3 149.2 129.8 161.2 214.2 144.5 139.2 135.7 138.8 139.4 149.4 136.5 133.5 135.8 July............... 148.0 160.5 150.9 130.3 163.2 218.5 146.2 141.4 135.3 140.6 141.0 151.4 137.8 134.6 137.7 Aug............... 149.9 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 141.3 142.6 153.7 139.3 135.2 139.4 Sept............... 151.7 165.0 154.9 131.4 167.9 222.7 150.2 146.6 139.9 142.2 144.0 155.2 141.2 137.0 140.4 Oct................ 153.0 166.1 156.7 132.2 170.1 225.5 151.5 149.0 141.1 142.9 145.2 156.3 143.0 137.8 141.4 Nov......... 154.3 167.8 158.3 132.8 171.7 229.2 154.0 151.0 142.4 143.4 146.3 157.5 144.2 138.8 142.7 Dec............... 155.4 169.7 159.9 133.5 174.0 228.8 156.7 152.3 141.9 143.5 147.5 159.0 145.3 139.8 143.9 1975—Jan................ 156.1 170.9 161.2 134.0 175.6 228.9 160.2 153.2 139.4 143.2 148.9 161.0 146.5 141.0 144.8 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro­ All Period m c t o i o e m d s i ­ ­ p F u r a c o r t d m s ­ c f f e a o e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u e tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s . , t­ e c m M a q e h n e u r i y a n d n i ­ p t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r l o a i l e n l n i ­ s c ­ ­ T e p m t q r o i e a o u r n n n i t p a t s ! ­ ­ ­ n c M e e o l i l u s a ­ s ­ 1960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971............................. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972............................. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973............................. 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974............................. 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 1974—Feb................... 149.5 205.6 164.7 138.2 135.2 143.4 177.4 120.2 119.8 184.1 132.9 148.0 127.0 120.2 142.1 118.9 124.6 Mar................... 151.4 197.0 163.0 142.4 136.1 143.4 189.0 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 Apr................... 152.7 186.2 159.1 146.6 137.5 145.4 197.9 132.3 129.4 200.2 114.4 161.2 130.8 122.9 146.7 119.4 128.2 May................. 155.0 180.8 158.9 150.5 139.1 146.3 204.3 137.0 133.7 198.0 146.6 168.7 134.1 124.5 150.7 121.4 133.2 June................. 155.7 168.6 157.4 153.6 141.7 146.0 210.5 142.8 135.6 192.2 147.5 174.0 137.2 126.1 152.3 122.8 134.3 July................... 161.7 180.8 167.6 157.8 142.1 146.6 221.7 148.4 139.5 188.6 153.3 180.3 140.3 128.2 156.4 125.1 135.2 Aug................... 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.8 157.6 126.7 135.4 Sept................... 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 Oct.................... 170.2 187.5 183.5 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 Nov................... 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 Dec................... 171.5 183.7 188.2 166.1 138.4 143.2 229.0 174.0 149.4 165.4 167.2 184.6 154.0 137.7 164.3 137.0 142.4 1975—Jan.................... 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 Feb................... 171.3 174.6 182.6 168.4 136.5 141.7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME □ MARCH 1975 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974? IV I II III Iy? 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.31,344.01,358.81,383.81,416.31,430.2 Final purchases.................................................. 101.4 57.2 120.1 278.0 972.61,048.61,149.51,279.61,883.01,815.1 1.841.91,870.81,407.61,412.4 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9 840.6 869.1 901.3 895.8 Durable goods.............................................. 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 124.3 123.9 129.5 136.1 120.7 Nondurable goods........................................ 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 352.1 364.4 375.8 389.0 391.7 Services......................................................... 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 347.4 352.4 363.8 376.2 383.5 Gross private domestic investment................... 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 224.5 210.5 211.8 205.8 209.4 Fixed investment........................................... 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 195.5 193.6 198.3 197.1 191.6 Nonresidential............................................ 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 141.9 145.2 149.4 150.9 151.2 Structures.............................................. 5.0 .9 2.9 9.2 36.1 37.9 41.1 47.0 52.0 49.3 51.3 52.2 51.0 53.7 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 64.4 66.6 75.7 89.8 97.1 92.6 93.9 97.2 99.9 97.5 Residential structures............................... 4.0 .6 3.9 19.4 31.2 42.8 54.0 57.2 46.0 53.6 48.4 48.8 46.2 40.4 Nonfarm................................................ 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 53.0 47.8 48.0 45.4 39.7 Change in business inventories................... 1.7 -1.6 4.5 6.8 4.5 6.3 8.5 15.4 14.2 28.9 16.9 13.5 8.7 17.8 1.8 -1.4 4.0 6.0 4.3 4.9 7.8 11.4 11.9 24.0 13.1 10.4 6.6 17.5 Net exports of goods and services................... 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.0 9.3 11.3 -1.5 -3.1 1.2 Exports.......................................................... 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 139.9 113.6 131.2 138.5 143.6 146.4 Imports.......................................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.0 104.3 119.9 140.0 146.7 145.3 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 286.4 296.3 304.4 312.3 323.8 Federal.......................................................... 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 108.4 111.5 114.3 117.2 124.5 National defense....................................... 13.8 14.1 74.6 71.2 74.8 74.4 78.7 75.3 75.8 16.6 78.4 84.0 Other.......................................................... 3.1 4.3 21.6 26.5 30.1 32.2 38.2 33.1 35.7 37.7 38.8 40.6 State and local...................................... ... 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 177.9 184.8 190.1 195.1 199.3 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.1 845.7 830.5 827.1 823.1 803.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business (generally the July issue) and the adjusted totals at annual rates. For back data and explanation of series, Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974? IV I II III IV? National income................................................ 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.81,106.31,118.81,130.21,155.5 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 814.8 828.8 848.3 868.2 877.7 Wages and salaries....................................... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 717.0 727.6 744.6 761.5 769.2 Private........................................................ 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545.1 592.4 565.8 573.8 588.3 602.5 605.1 .3 .3 1.9 5.0 19.6 19.4 20.5 20.6 21.2 21.0 21.0 20.9 20.8 22.0 Government civilian................................. 4.6 4.9 8.3 17.4 95.5 104.7 114.8 126.0 137.1 130.2 132.8 135.4 138.2 142.1 Supplements to wages and salaries............... .7 .5 2.7 7.8 61.9 69.5 80.3 94.4 105.1 97.7 101.2 103.7 106.7 108.6 Employer contributions for social in­ surance .................................................. .1 .1 2.0 4.0 29.7 33.1 38.6 48.4 53.6 50.1 52.3 53.2 54.5 54.6 .6 .4 .7 3.8 32.2 36.4 41.7 46.0 51.4 47.6 48.9 50.5 52.3 54.0 Proprietors’ income.......................................... 15.1 5.9 17.5 37.5 66.9 69.2 75.9 96.1 93.0 103.2 98.4 89.9 92.1 91.6 Business and professional............................ 9.0 3.3 11.1 24.0 50.0 52.0 54.9 57.6 61.2 58.4 59.3 60.7 62.3 62.5 6.2 2.6 6.4 13.5 16.9 17.2 21.0 38.5 31.8 44.9 39.1 29.1 29.8 29.1 Rental income of persons................................. 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.1 26.5 26.4 26.4 26.3 26.6 26.8 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.9 106.4 107.7 105.6 105.8 Profits before tax.......................................... 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 141.4 122.7 135.4 139.0 157.0 Profits tax liability.................................... 1.4 .5 7.6 17.8 34.8 37.5 41.5 49.8 55.8 49.5 52.2 55.9 62.1 Profits after tax........................................ 8.6 .4 10.1 24.9 39.3 46.1 57.7 72.9 85.7 73.2 83.2 83.1 94.3 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.1 30.7 31.6 32.5 33.2 33.3 Undistributed profits........................... 2.8 -1.6 5.7 16.0 14.6 21.1 30.3 43.3 53.0 42.5 51.6 50.5 61.1 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -4.8 -4.9 -7.0 -17.6 -35.5 -16.3 -27.7 -33.4 -51.2 -29.9 Net interest....................................................... 4.7 4.1 3.2 2.0 36.5 41.6 45.6 52.3 61.6 55.5 57.5 60.1 62.8 65.9 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ NATIONAL PRODUCT AND INCOME A 57 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 1929 1933 1941 1950 1970 1971 1972 1973 1974p IV I II III ivp Gross national product. 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.31,344.01,358.81,383.81,416.31,430.2 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 113.9 115.8 118.6 120.7 122.9 Indirect business tax and nontax lia­ bility.................................................... 7.0 7.1 11.3 23.3 93.5 102.7 110.0 119.2 126.9 121.3 122.6 125.9 129.5 129.8 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.0 5.1 5.2 5.3 5.3 Statistical discrepancy........................... .7 .6 .4 1.5 -6.4 -2.3 -3.8 -5.0 .0 -2.6 -6.3 .3 3.0 Plus: Subsidies less current surplus of gov­ ernment enterprises............................ -.1 .1 .2 1.7 1.1 2.3 .6 -2.9 -.1 -2.7 -3.7 -2.4 -2.7 Equals: National income. 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.81,106.31,118.81,130.21,155.5 Less: Corporate profits and inventory valu­ ation adjustment................................. 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.9 106.4 107.7 105.6 105.8 Contributions for social insurance........ .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 93.9 99.1 100.8 103.0 103.2 Excess of wage accruals over disburse­ ments ................................................... .0 .6 .0 — .1 -.5 .0 .0 -.6 — 1.5 .0 Plus: Government transfer payments............ .9 1.5 2.6 14.3 75.1 89.0 98.6 113.0 134.6 117.1 123.1 130.6 138.7 145.8 Net interest paid by government and consumers........................................... 2.5 1.6 2.2 7.2 31.0 31.2 33.0 38.3 42.3 40.4 40.8 41.9 42.7 43.6 Dividends................................................ 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 30.7 31.6 32.5 33.2 33.3 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.0 5.1 5.2 5.3 5.3 Equals: Personal income.............................. 85.9 47.0 96.0 227.6 808.3 864.0 944.91,055.01,150.51,099.31,112.51,134.61,168.21,186.9 Less: Personal tax and nontax payments. . 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 159.9 161.9 168.2 175.1 178.1 Equals: Disposable personal income............ 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 939.4 950.6 966.5 993.11,008.8 Less: Personal outlays..................................... 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 850.1 866.2 894.9 927.6 922.3 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9 840.6 869.1 901.3 895.8 Consumer interest payments............. 1.5 .5 .9 2.4 16.8 17.7 19.8 22.9 25.0 24.0 24.4 24.8 25.3 25.5 Personal transfer payments to for­ eigners.............................................. .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 2.2 1.2 1.0 .9 .9 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 89.3 84.4 71.5 65.5 86.5 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 622.9 610.3 603.5 602.9 594.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1974 1975 Item 1973 1974 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total personal income.............. 1,055.01,150.51,107.01,113.41,117.11,125.21,135.21,143.5 1,159.5 1,167.21,178.01,185.01,184.5 1,191.01,193.6 Wage and salary disbursements. 691.7 751.2 722.5 728.3 732.1 737.1 745.3 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 Commodity-producing in­ dustries .......................... 251.9 270.9 262.1 264.6 265.3 267.4 270.0 272.6 273.3 276.5 278.3 279.5 272.3 269.3 265.9 Manufacturing only.......... 196.6 211.3 204.1 204.9 205.5 207.8 210.1 212.5 214.0 215.5 217.8 219.4 214.2 209.7 205.3 Distributive industries. . .. 165.1 178.9 172.0 172.8 173.9 175.3 177.8 179.1 180.8 180.7 183.1 183.8 183.9 183.8 183.7 Service industries.................. 128.2 142.6 135.3 137.0 138.2 139.1 141.1 142.6 143.5 144.9 146.4 146.9 147.4 148.3 150.0 Government.......................... 146.6 158.8 153.0 153.8 154.6 155.3 156.3 158.9 162.1 159.5 159.9 162.8 164.2 165.2 166.1 Other labor income................. 46.0 51.4 48.5 48.9 49.4 49.9 50.5 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 Proprietors’ income.................. 96.1 93.0 100.8 98.5 96.0 92.8 89.9 86.9 90.0 93.1 93.2 91.7 91.6 91.5 89.6 Business and professional... 57.6 61.2 58.7 59.4 59.9 60.2 60.8 61.2 61.9 62.5 62.5 62.5 62.5 62.5 62.7 Farm...................................... 38.5 31.8 42.1 39.1 36.1 32.6 29.1 25.7 28.1 30.6 30.7 29.2 29.1 29.0 26.9 Rental income........................... 26.1 26.5 26.4 26.4 26.4 25.5 26.7 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 Dividends.................................. 29.6 32.7 31.4 31.6 31.9 32.1 32.5 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 Personal interest income.......... 90.6 103.8 97.5 98.3 99.0 100.4 102.0 103.5 104.4 105.3 106.9 108.0 109.5 111.1 112.6 Transfer payments................... 117.8 139.8 126.7 128.4 129.5 134.6 135.8 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.8 Less: Personal contributions for social insurance........ 42.8 47.9 46.7 46.8 47.0 47.2 47.6 47.9 48.5 48.4 48.6 48.9 48.5 48.4 48.8 Nonagricultural income............ 1,008.01,109.01,055.51,064.91,071.61,083.11,096.61,106.8 1,121.7 1,126.81,137.4 1145.91,145.21,151.41,156.0 Agricultural income.................. 47.1 41.5 51.5 48.5 45.5 42.1 38.6 36.8 37.1 40.4 40.6 39.3 39.3 39.5 37.7 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 FLOW OF FUNDS □ MARCH 1975 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................. 69.9 67.9 82.4 95.9 91.8 98.2 147.4 169.4 187.4 175.7 190.8 160.6 1 2 Excluding equities................................................. 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 172.4 185.5 159.3 2 3 U.S. Government....................................................... 1.8 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 9.7 13.0 6.3 19.6 3 4 Public debt securities.............................................. 1.3 2.3 8.9 10.3 -1.3 12.9 26.0 13.9 7.7 13.1 5.1 21.1 4 5 Budget agency issues.............................................. .5 1.3 4.1 3.1 -2.4 -.1 -.5 3.4 2.0 -.1 1.2 -1.5 5 6 All other nonfinancial sectors..................................... 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 162.7 184.5 141.0 6 7 Corporate equities.................................................. .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 3.3 5.4 1.2 7 8 Debt instruments.............................................. 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 159.4 179.2 139.7 8 9 Debt capital instruments....................................... 38.8 38.9 45.7 50.6 50.6 57.6 84.2 94.9 97.1 92.9 100.9 84.9 9 10 State and local government securities................ 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.0 17.8 16.1 10 11 Corporate and foreign bonds........................... 5.9 11.0 15.9 14.0 13.0 20.6 19.7 13.2 10.2 20.9 20.2 21.7 11 12 Mortgages............................................................ 25.6 22.3 22.0 27.1 27.7 25.7 46.9 67.3 73.2 55.0 62.9 47.2 12 13 Home mortgages.............................................. 15.4 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.3 35.8 26.9 13 14 Other residential.............................................. 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.5 7.3 7.7 14 15 Commercial...................................................... 4.4 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.3 15.7 7.0 15 16 Farm................................................................. 2.2 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.8 4.1 5.5 16 17 Other private credit................................................ 29.0 24.4 21.3 32.0 41.0 22.1 26.3 46.7 73.4 66.5 78.2 54.8 17 18 Bank loans n.e.c.................................................. 14.1 10.7 9.5 13.1 15.3 6.4 9.3 21.8 38.6 29.9 42.1 17.7 18 19 Consumer credit................................................. 9.6 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 9.6 12.7 6.6 19 20 Open-market paper............................................ -.3 1.0 2.1 1.6 3.3 3.8 -.9 -1.6 1.8 14.9 15.4 14.4 20 21 5.6 6.2 5.1 7.2 12.0 5.9 6.6 7.3 10.0 12.1 8.1 16.0 21 22 By borrowing sector................................................ 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 162.7 184.5 141.0 22 23 Debt instruments.............................................. 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 159.4 179.2 139.7 23 24 Foreign................................................................ 2.4 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 20.1 11.3 24 25 State and local governments.............................. 7.7 6.3 7.9 9.8 10.7 11.3 17.8 14.2 12.3 15.8 16.0 15.7 25 26 Households.......................................................... 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 42.5 47.5 37.6 26 27 Nonfinancial business........................................ 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1 27 28 3.3 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.4 7.3 7.5 28 29 Nonfarm noncorporate.................................... 5.7 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 6.7 7.2 6.3 29 30 Corporate......................................................... 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 71.3 81.2 61.4 30 31 Corporate equities.............................................. .3 1.0 2.4 * 3.9 5.8 11.5 10.5 1.2 3.3 5.4 1.2 31 32 Foreign................................................................ .3 -.3 .1 .2 .5 .1 * -.4 -.2 -.2 -.2 -.2 32 33 Corporate business............................................. * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 33 Totals including equities 34 Foreign................................................................ 2.7 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.5 19.9 11.2 34 35 Nonfinancial business........................................ 29.4 33.8 38.1 39.9 49.4 48.0 59.6 70.5 85.1 88.9 101.2 76.5 35 36 Corporate........................................................ 20.4 25.3 29.6 31.5 38.9 39.5 46.8 55.3 67.2 74.7 86.7 62.8 36 37 Memo: U.S. Govt, cash balance......................... -1.0 -.4 1.2 -1.1 .4 2.8 3.2 -.3 -1.7 -4.8 -2.3 -7.2 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised...................................................... 70.9 68.3 81.3 97.1 91.4 95.5 144.2 169.7 189.0 180.5 193.1 167.8 38 39 By U.S. Government............................................ 2.8 4.0 11.8 14.5 -4.0 10.0 22.3 17.6 11.4 17.7 8.6 26.8 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlays *...................................... 173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 330.7 331.6 329.7 1 2 Capital consumption 2........................................... 110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 220.4 218.2 222.6 2 3 Net physical investment......................................... 62.8 72.2 59.7 67.2 72.4 58.2 74.6 98.7 123.7 110.3 113.5 107.1 3 4 Net funds raised..................................................... 57.8 56.5 57.5 69.9 81.1 71.4 99.4 133.6 157.9 131.4 148.7 114.1 4 5 Excess net investment 3.......................................... 5.1 15.7 2.2 -2.7 -8.7 -13.2 -24.8 -34.9 -34.2 -21.1 -35.2 -7.1 5 Total business 6 Total capital outlays........................................ 83.6 96.4 93.4 97.9 108.9 108.0 117.1 134.3 160.5 164.1 166.8 161.4 6 7 Capital consumption.............................................. 50.5 54.2 58.5 63.2 69.5 74.6 80.3 88.2 95.2 103.1 100.9 105.3 7 8 Net physical investment......................................... 33.1 42.3 35.0 34.7 39.4 33.5 36.8 46.0 65.3 61.0 65.9 56.1 8 9 Net debt funds raised............................................. 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1 9 10 Corporate equity issues......................................... * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 10 11 Excess net investment 3.......................................... 3.1 8.5 -3.2 -5.2 -10.0 -14.5 -22.8 -24.5 -19.8 -27.9 -35.4 -20.4 11 Corporate business 12 Total capital outlays........................................ 62.3 76.5 71.4 75.0 83.7 84.0 87.2 102.5 121.5 125.8 126.0 125.6 12 13 Capital consumption.............................................. 35.2 38.2 41.5 45.1 49.8 53.6 57.7 63.0 67.5 72.5 70.8 74.2 13 14 Net physical investment......................................... 27.1 38.3 29.9 29.9 33.9 30.4 29.5 39.4 54.0 53.3 55.2 51.4 14 15 Net debt funds raised............................................ 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 71.3 81.2 61.4 15 16 Corporate equity issues.......................................... * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 16 17 Excess net investment 3.......................................... 6.7 13.0 .4 -1.6 -5.0 -9.1 -17.3 -15.8 -13.1 -21.4 -31.6 -11.3 17 Households 18 Total capital outlays........................................ 89.6 94.2 94.6 109.7 117.8 116.2 136.4 158.8 174.1 166.6 164.9 168.3 18 19 Capital consumption.............................................. 59.9 64.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 117.3 117.3 117.3 19 20 Net physical investment......................................... 29.7 29.9 24.7 32.5 33.0 24.7 37.8 52.7 58.4 49.3 47.6 51.0 20 21 Net funds raised..................................................... 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 42.5 47.5 37.6 21 22 Excess net investment 3.......................................... 1.4 7.2 5.4 2.5 1.3 1.4 -2.1 -10.4 -14.4 6.8 .2 13.3 22 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 5) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by Federally on N a o q t u e a .— rte F r u ly ll b s a t s a i t s e m an e d n t a s n n fo ua r ll s y e c fo to r r s f lo a w nd s a tr n a d n s f a o c r t i a o m n o ty u p n e t s s a o r u e t s a t v an ai d la in b g le . t s i p o o n n s. s o S r u e c d h c i r s e s d ue it s a a g r e e n o ci n e s p a . re A - e 5 x 9 c , l u l d in e e d a 1 s 1 . b C or o r r o p w o i r n a g te b e y q u f i i t n y a i n s c s i u a e l s i a n r s e t i n tu e ­ t Requests for these statements should be addressed to the Flow of Funds cash issues by nonfinancial and foreign corporations. Mortgages exclude Section, Division of Research and Statistics, Board of Governors of the loans in process. Open market paper is commercial paper issued by Digitized for FRAFeSdEerRal Reserve System, Washington, D.C. 20551. nonfinancial corporations plus bankers’ acceptances. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ FLOW OF FUNDS A 59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors............................................. 69.6 66.9 80.0' 95.9 88.0 92.5; 135.9 158.9 180.1 172.4 185.5 159.3 1 By public agencies and foreign 2 Total net advances...................................................... 8.9 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 49.0 39.7 58.3 2 3 U.S. Government securities................................... 3.7 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.8 6.9 10.8 3 4 Residential mortgages............................................ .4 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.9 11.7 16.1 4 5 FHLB advances to S&L’s..................................... .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 5 6 Other loans and securities..................................... 4.1 4.8 4.9 5.1 6.3 5.2 4.9 4.6 7.5 19.7 14.3 25.0 6 By agency— 7 2.8 4.9 4.6 4.9 2.9 2.8 3.2 2.6 3.0 5.9 2.4 9.4 7 8 Sponsored credit agencies...................................... 2.2 5.1 -.1 3.2 8.9 10.0' 3.2 7.0 20.3 24.0 20.3 27.7 8 9 Monetary authorities.............................................. 3.8 3.5 4.8 3.7 4.2 5.0' 8.9 .3 9.2 6.2 6.1 6.2 9 10 Foreign.................................................................... .1 -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 12.9 10.9 15.0 10 11 Agency borrowing not included in line 1................. 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 21.6 16.8 26.5 11 Private domestic funds advanced 12 62.8 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 145.0 162.5 127.6 12 13 U.S. Government securities................................... * 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 25.1 16.3 34.0 13 14 State and local obligations..................................... 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.0 17.8 16.1 14 15 Corporate and foreign bonds................................ 6.0 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 19.8 18.9 20.6 15 16 Residential mortgages............................................ 18.6 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.0 31.4 18.6 16 17 Other mortgages and loans................................... 31.6 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 64.9 85.0 44.8 17 18 Less: FHLB advances............................................ .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 18 Private financial intermediation 19 Credit market funds advanced by private financial 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 129.2 154.8 103.7 19 20 Commercial banking.............................................. 28.7 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 61.8 87.8 35.9 20 21 Savings institutions................................................. 14.3 7.9 15.0 15.6 14.5 16.9 41.4 49.3 35.1 27.6 35.2 20.1 21 22 Insurance and pension funds................................. 13.6 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.1 28.1 40.0 22 23 Other finance.......................................................... 6.2 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.7 3.8 7.7 23 24 Sources of funds.......................................................... 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 129.2 154.8 103.7 24 25 38.4 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 71.9 94.6 49.1 25 26 Credit market borrowing....................................... 7.9 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 16.6 23.3 9.9 26 27 16.6 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40.8 37.0 44.6 27 28 Foreign funds...................................................... .8 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 11.9 10.5 13.3 28 29 Treasury balances............................................... -1.0 -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -5.3 -2.3 -8.3 29 30 Insurance and pension reserves......................... 11.4 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 29.0 23.0 35.1 30 31 Other, net............................................................ 5.4 3.0 -.6 7.2 13.8 4.4 2.9 16.5 20.2 5.1 5.8 4.5 31 Private domestic nonfinancial investors 32 Direct lending in credit markets............................... 7.9 17.6 4.2 20.4 44.5 -2.6 -3.2 13.7 39.3 32.4 30.9 33.8 32 33 U.S. Government securities................................... 2.9 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 17.9 14.5 21.2 33 34 State and local obligations..................................... 2.6 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 12.5 8.2 16.8 34 35 Corporate and foreign bonds................................ 1.0 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -3.0 -1.0 -5.1 35 36 Commercial paper.................................................. 1.5 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 2.1 7.3 -3.1 36 37 Other....................................................................... -.1 2.3 1.7 2.1 2.0 1.4 1.5 .8 3.8 2.9 1.9 3.9 37 38 Deposits and currency................................................ 40.5 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 77.9 103.2 52.6 38 39 Time and savings accounts.................................... 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 70.5 88.8 52.1 39 40 Large negotiable CD’s....................................... 3.6 -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 24.2 30.3 18.0 40 41 Other at commercial banks............................... 16.0 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 24.6 32.0 17.1 41 42 At savings institutions........................................ 13.2 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 21.7 26.6 16.9 42 43 Money..................................................................... 7.8 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 7.4 14.3 .5 43 44 Demand deposits................................................ 5.6 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 1.4 5.8 -2.9 44 45 Currency.............................................................. 2.1 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.0 8.6 3.4 45 46 Total of credit market instr., deposits, and currency. 48.4 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 110.2 134.1 86.3 46 47 Public support rate (in per cent)........................... 12.8 17.9 14.1 12.7 17.8 30.4 30.7 11.5 18.4 28.4 21.4 36.6 47 48 Private financial intermediation (in per cent)........ 100.1 75.9 93.2 86.4 68.3 103.1 112.8 104.5 95.4 89.1 95.3 81.3 48 49 Total foreign funds................................................ .8 2.1 4.3 2.9 9.1 1.8 23.2 13.6 7.2 24.9 21.4 28.3 49 Corporate equities not included above 1 Total net issues........................................................... 3.5 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 6.1 5.9 6.2 1 2 Mutual fund shares................................................ 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.6 -.8 3.9 2 3 Other equities......................................................... .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.5 6.7 2.3 3 4 Acquisitions by financial institutions....................... 6.1 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 5.0 8.9 1.2 4 5 Other net purchases................................................... -2.6 -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 1.0 -3.0 5.0 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-58. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 U.S. BALANCE OF PAYMENTS □ MARCH 1975 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1973 1974 Line Credits (+), debits (—) 1971 1972 1973 III IV I II III p 1 Merchandise trade balance 1. -2,722 -6,986 471 578 1,210 -74 -1,631 -2,557 2 Exports........................... 42,754 48,768 70,277 18,152 20,216 22,299 24,089 24,634 3 Imports........................... -45,476 -55,754 -69,806 -17,574 -19,006 -22,373 -25,720 -27,191 4 Military transactions, net......... -2,908 -3,604 -2,266 -547 -123 -493 -664 -456 5 Travel and transportation, net. -2,341 -3,055 -2,710 -613 -630 -533 -730 -503 6 Investment income, net 2...................................... 5,021 4,526 5,291 1,257 1,378 3,076 1,846 2,215 7 U.S. direct investments abroad 2................. 6,385 6,925 9,415 2,323 2,688 4,619 4,516 4,738 8 Other U.S. investments abroad..................... 3,444 3,494 4,569 1,179 1,292 1,500 1,840 2,209 9 Foreign investments in the United States 2 . -4,809 -5,893 -8,693 -2,245 -2,602 -3,043 -4,510 -4,732 10 Other services, net 2........ 2,781 3,110 3,540 984 901 921 996 962 11 Balance on goods and services • -170 -6,009 4,327 / 1,659 2,736 2,897 -184 -339 \ -195 3,800 4,018 -7 -2,963 12 Remittances, pensions, and other transfers. -1,604 -1,624 -1,943 -412 -111 -390 -467 -468 13 Balance on goods, services, and remittances..., -1,774 -7,634 2,383 / 1,247 2,019 2,507 -651 -807 \ -623 3,077 3,654 -476 -3,448 14 U.S. Government grants (excluding military). -2,043 -2,173 -1,933 -485 -447 4-2,561 -1,435 -781 15 Balance on current account...................................... -3,817 -9,807 450/ 762 1,572 4 -54 -2,086 -1,588 I-1,071 2,653 1,075 -1,952 -4,194 16 U.S. Government capital flows excluding nonscheduled 17 No re n p sc a h y e m d e u n le ts d , r n e e p t a 5 y . m ... e .. n .. t . s . .. o .. f .. . U .. . . S ... . . . G ... o .. v .. e .. r .. n .. m ... e .. n .. t . . a .. s .. s . e .. t . s .. . . . . . . . . . . . . . . . . . . . . . . -2,1 2 1 2 1 7 -1,7 1 0 3 5 7 -2,9 2 3 8 8 9 -608 4 -1,066 * 4 1,307 * 335 -269 * 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies........................................................... -478 238 1,111 206 204 36 245 274 19 Long-term private capital flows, net......................................... -4,381 -98 62 1,527 -1,451 506 -973 -1,998 20 U.S. direct investments abroad.......................................... -4,943 -3,517 -4,872 -710 -1,374 -627 -1,527 -1,971 21 Foreign direct investments in the United States............... -115 383 2,537 886 712 1,281 1,677 -50 22 Foreign securities................................................................ -966 -654 -807 -209 -525 -646 -313 -300 23 U.S. securities other than Treasury issues........................ 2,289 4,507 4,051 1,173 670 687 419 169 24 Other, reported by U.S. banks.......................................... -862 -1,158 -647 225 -504 -11 -898 96 27 Other, reported by U.S. nonbanking concerns................ 216 341 -200 162 -430 -178 -331 58 26 Balance on current account and long-term capital 5. -10,559 -11,235 -1,026 / 1,891 -741 1,795 -2,179 -3,581 \ 222 999 2,192 -2,435 -5,994 Nonliquid short-term private capital flows, net............ -2,347 -1,541 -4,276 97 -1,253 -3,966 -5,429 -1,668 Claims reported by U.S. banks............................... -1,802 -1,457 -3,940 222 -1,119 -2,807 -5,324 -1,651 Claims reported by U.S. nonbanking concerns -530 -305 -1,240 -460 -664 -1,622 -813 -110 Liabilities reported by U.S. nonbanking concerns. -15 221 904 335 530 463 708 93 Allocations of Special Drawing Rights (SDR’s).......... 717 710 Errors and omissions, net.............................................. -9,776 -1,790 -2,303 -336 1,125 1,118 1,686 783 Net liquidity balance. -21,965 -13,856 -7,606 / 1,652 -869 -1,053 -6,222 -4,466 \ 637 -89 -223 - 6,607 -5,743 34 Liquid private capital flows, net.............................. -7,788 3,502 2,302 290 3,530 2,095 1,697 4,138 35 Liquid claims...................................................... -1,097 -1,247 -1,944 -521 -493 -2,604 -1,141 290 36 Reported by U.S. banks............................ -566 -742 -1,103 -456 -472 -2,232 -1,236 -320 37 Reported by U.S. nonbanking concerns.. -531 -505 -841 -65 -21 -372 95 610 38 Liquid liabilities—............................................. -6,691 4,749 4,246 811 4,023 4,699 2,838 3,848 39 Foreign commercial banks....................... -6,908 3,716 2,952 699 3,227 4,644 1,944 2,748 40 International and regional organizations. 682 104 377 -50 384 -585 292 221 41 Other foreigners...................................... -465 929 887 162 412 640 602 879 42 Official reserve transactions balance, financed by changes in—. -29,753 -10,354 -5,304 J 1,942 2,661 1,042 -4,525 -328 \ 939 2,982 1,495 -4,105 -1,584 Liquid liabilities to foreign official agencies........................... 27,615 9,734 4,452 -1,488 -2,145 -553 4,258 1,289 Other readily marketable liabilities to foreign official agen­ cies 6...................................................................................... -551 399 1,118 11 -354 -277 182 43 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt.............................................................. 341 189 -475 -452 -147 -2 443 -1 U.S. official reserve assets, net................................................. 2,348 32 209 -13 -15 -210 -358 -1,003 Gold..................................................................................... 866 547 SDR’s................................................................................. —249 -703 9 -29 -123 Convertible currencies....................................................... 381 35 233 -i -85 -152 Gold tranche position in IMF.......................................... 1,350 153 -33 13 -15 -209 -244 -728 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................... 3,204 4,189 2,772 758 487 393 542 405 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................ 3,157 4,521 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)..................................... 498 548 Balances excluding allocations of SDR’s 54 Net liquidity.................................... -22,682 -14,566 - 7,606 637 -89 -223 -6,607 -5,743 55 Official reserve transactions. -30,470 -11,064 - 5,304 939 2,982 1,495 -4,105 -1,584 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 197 2 1973 1974 r 1975 1972 1973 1974' 1975 1972 1973 1974 1975 Month: Jan..., 4.074 4,955 7,150 9,412 4,436 5,244 6,536 9,659 -361 -289 +614 -247 Feb... 3,824 5,070 7,549 4,473 5,483 7,374 -649 -413 + 175 Mar... 3,869 5,311 7,625 4,515 5,414 7,785 -647 -103 -160 Apr... 3,820 5,494 8,108 4,417 5,360 8.064 -596 -4-133 +44 May.. 3,882 5,561 7,652 4,486 5,703 8,326 -604 — 142 -674 June.. 3,971 5,728 8,317 4,468 5,775 8,630 -497 —47 -313 July... 4.074 5,865 8,308 4,565 5,829 8,962 -491 + 37 -655 Aug... 4,197 6,042 8,380 4,726 6,011 9,338 -530 + 32 -959 Sept... 4,176 6,420 8,396 4,612 5,644 8,780 -436 +776 -384 Oct... 4,316 6,585 8,673 4,738 5,996 8,862 -421 +589 -189 Nov... 4,473 6,879 8,974 5,148 6,684 9.064 -675 + 195 -91 Dec... 4,558 6,949 8,862 5,002 6,291 9,315 -444 +658 -453 Quarter: I 11,767 15,337 22,324 13,403 16,140 21,695 -1,657 -804 +629 I I 11,673 16,783 24,077 13,370 16,838 25,019 -1,697 -56 -942 III.... 12,447 18,327 25,084 13,903 17,483 27,081 -1,456 +845 -1,997 IV.... 13,347 20,413 26,509 14,888 18,972 27,241 -1,540 + 1,441 -732 Year3... 49,208 70,823 97,907 55,555 69,476 100,972 -6,347 + 1,348 -3,065 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Sum of unadjusted figures. Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. Note.—Bureau of the Census data. Details may not add to totals be­ 2 General imports including imports for immediate consumption plus cause of rounding. entries into bonded warehouses. 3. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l 2 ld st T o r c e k a i sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i e n t F i r o v n e SDR’s3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo C e u c r r i r o e e t r i s i e n b g 4 n ­ l n e ­ p R o e I s M s i i e n ti r F o v n e SDR’s3 1961... 18,753 16,947 16,889 116 1,690 1974 1962... 17,220 16,057 15,978 99 1,064 Feb.... 14,643 11,652 11,567 68 757 2,166 1963... 16,843 15,596 15,513 212 1,035 Mar.... 14,588 11,652 11,567 9 761 2,166 1964... 16,672 15,471 15,388 432 769 Apr.. .. 14,642 11,652 11,567 9 824 2,157 May... 14,870 11,652 11,567 66 989 2,163 1965... 15,450 13,806 13,733 781 863 June... 14,946 11,652 11,567 94 1,005 2,195 1966... 14,882 13,235 13,159 1,321 326 July.... 14,912 11,652 11,567 12 1,021 2,227 1967... 14,830 12,065 11,982 2,345 420 Aug. .. 15,460 11,652 11,567 224 1,384 2,200 1968... 15,710 10,892 10,367 3,528 1,290 Sept__ 15,893 11,652 11,567 246 1,713 2,282 1969... 5 16,964 11,859 10,367 52,781 2,324 Oct.. . . 15,890 11,652 11,567 193 1,739 2,306 Nov.... 15,840 11,652 11,567 43 1,816 2,329 1970... 14,487 11,072 10,732 629 1,935 851 Dec.... 15,883 11,652 11,652 5 1,852 2,374 1971... 612,167 10,206 10,132 6 276 585 1,100 19727. . 13,151 10,487 10,410 241 465 1,958 1975— 19738 . . 14,378 11,652 11,567 8 552 2,166 15,948 11,635 11,635 2 1,908 2,403 1974. . . 15,883 11,652 11,652 5 1,852 2,374 Feb........ 916,132 11,621 11,621 2 9 2,065 9 2,444 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR’s $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 8 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million) 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR’s $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 9 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR’s. of 16 member countries. The U.S. SDR holdings and reserve position 4 For holdings of F.R. Banks only, see p. A-ll. in the IMF are also valued on this basis beginning July 1974. At valua­ 5 Includes gain of $67 million resulting from revaluation of the German tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end mark in Oct. 1969, of which $13 million represents gain on mark holdings of Feb. amounted to $2,338 million, reserve position in IMF, $1,972 at time of revaluation. million, and total U.S. reserve assets, $15,933 million. 6 Includes $28 million increase in dollar value of foreign currencies revalued to reflect market exchange rates as of Dec. 31, 1971. Note.—See Table 20 for gold held under earmark at F.R. Banks for 7 Total reserve assets include an increase of $1,016 million resulting foreign and international accounts. Gold under earmark is not included from change in par value of the U.S. dollar on May 8, 1972; of which, in the gold stock of the United States. NOTES TO TABLE 1 ON OPPOSITE PAGE: 1 Adjusted to balance of payments basis; excludes exports under U.S. resenting the refinancing of economic assistance loans to India; a cor­ military agency sales contracts, and imports of U.S. military agencies. responding reduction of credits is shown in line 16. 2 Fees and royalities from U.S. direct investments abroad or from 5 Includes some short-term U.S. Govt, assets. foreign direct investments in the United States are excluded from invest­ 6 Includes changes in long-term liabilities reported by banks in the ment income and included in “Other services.” United States and in investments by foreign official agencies in debt 3 Includes special military shipments to Israel that are excluded from the securities of U.S. Federally sponsored agencies and U.S. corporations. “net exports of goods and services” in the national income and products (GNP) accounts of the United States. Note.—Data are from U.S. Department of Commerce, Bureau of Eco­ 4 Includes under U.S. Government grants $2 billion equivalent, rep­ nomic Analysis. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 U.S. GOLD TRANSACTIONS □ MARCH 1975 4. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; in millions of dollars valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) 1974 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 I II III IV Western Europe: -82 -55 -100 -25 4 -40 -83 -58 -110 -518 -405 -884 -601 600 325 -129 -473 -225 500 -1 -2 -2 -2 -52 41 2 200 -80 -60 -85 -209 -76 -60 -35 -19 -50 -25 -130 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 United Kingdom................ 329 618 150 80 -879 -835 200 Other................................... 1 -6 -35 -49 16 -47 11 -29 -13 Total........................... -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada ................................. 200 150 50 Latin American republics: Argentina ......................... -30 -39 -25 -25 -28 Brazil................................... 72 54 25 -3 * -23 Colombia............................ 10 29 7 * -1 Venezuela........................... -25 Other................................... -11 -9 -13 -6 11 -40 -29 -80 -5 Total........................... 32 56 17 -41 9 -65 -54 -131 -5 Asia: Iraq..................................... -10 -4 -21 -42 Japan................................... -56 -119 Lebanon............................. -11 -11 -1 -95 -35 Malaysia............................ -34 -10 Philippines.......................... 25 20 * -1 9 40 -4 -2 Saudi Arabia...................... -50 -81 11 -30 Other................................... -13 -6 -14 -14 -22 -75 -9 2-91 39 -3 Total........................... 12 3 -24 -86 -44 -366 42 -213 -38 -3 All other................................. -36 -7 -16 -22 3-166 3-68 -1 -81 -6 Total foreign countries.......... -392 -36 -1,322 -608 -1,031 -1,118 957 -631 -845 -3 Inti Monetary Fund4....... 5-225 177 22 -3 10 -156 -22 -544 -392 -36 -1,547 -431 -1,009 -1,121 967 6-787 -867 -547 1 Includes purchase from Denmark of $25 million. repurchase; proceeds from these sales invested by IMF in U.S. Treasury 2 Includes purchase from Kuwait of $25 million. securities. IMF repurchased $400 million in Sept. 1970 and the remaining 3 Includes sales to Algeria of $150 million in 1967 and $50 million in $400 million in Feb. 1972. 1968. 5 Payment to the IMF of $259 million increase in U.S. gold subscription 4 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. U.S. payment of increases in its gold subscription to IMF, gold deposits 6 Includes the U.S. payment of $385 million increase in its gold sub­ by the IMF (see note 1 (b) to Table 3), and withdrawal of deposits. The scription to the IMF and gold sold by the IMF to the United States in first withdrawal ($17 million) was made in June 1968 and the last with­ mitigation of U.S. sales to other countries making gold payments to the drawal ($144 million) was made in Feb. 1972. IMF. The country data include U.S. gold sales to various countries in IMF sold to the United States a total of $800 million of gold ($200 connection with the IMF quota payments. Such U.S. sales to countries million in 1956, and $300 million in 1959 and in 1960) with the right of and resales to the United States by the IMF totaled $548 million each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid ties to p E e o r n i f o d d Total a a c t f r I r g t r i M a i o s o o n i l m n d F n s g ­ s 1 Total t p l S b i i t e o a h a e b s r b n o r y t m i k r e r l e t i d s ­ ­ ­ M T b U a o a a r b e n n r .S a k l d d e s . e s . t­ N v k T b o e e U c o r n r t o e n t a . m i S n a b d b s . ­ l a s l . e e r­ N n v k T b o n o e e U o a r n n o r t e n n a t . c m t S i a b d e d b o s . s l a s l n . e e 4 r ­ ­ m r l O e i t a a a i a t b b r e d h k l i s i e e l e l 5 i r y ­ t­ a t m L o l b b i e a a i r t c q i r o b n e o c u a i k s i l m i d a i s d ­ l ­ 6 Total t p l S b i i t o e a h a e b s r b n r o y t m i k e r r l e t i d s ­ ­ ­ M T b U a o a a r b e n n r .S l k a d d e s . e s . t­ z o a m g a n r t n i i g t o a d o n o i a r n o n t n y n r i e n a , ­ e ­ i s l ­ ­ 8 in notes3 and in notes3'7 U.S. notes U.S. 196 3 26,394 800 14,425 12,467 1,183 703 5,817 3,387 3,046 341 1,965 1964 9............. /29,313 800 15,790 13,224 1.125 1.079 204 158 7,271 3,730 3,354 376 1.722 \29,364 800 15.786 13,220 1.125 1.079 204 158 7,303 3,753 3,377 376 1.722 196 5 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9............. J \3 31 1, ,1 0 4 2 5 0 1 1 , , 0 0 1 1 1 1 1 14 4 , , 8 8 4 9 1 6 1 1 2 2, , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 56 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3. . 7 7 4 4 3 4 5 5 2 2 8 8 9 9 0 0 5 6 1967 9............. /35,819 1.033 18,201 14,034 908 711 741 1.807 11,209 4,685 4,127 558 691 135,667 1.033 18,194 14,027 908 711 741 1.807 11,085 4,678 4,120 558 677 1968 9.............. f38,687 1.030 17,407 11.318 529 701 2.518 2.341 14.472 5,053 4.444 609 725 \38,473 1.030 17,340 11.318 462 701 2.518 2.341 14.472 4,909 4.444 465 722 1969 9............. *0/45,755 1.019 iol5,975 11,054 346 10 555 102,515 1.505 23.638 4,464 3,939 525 659 \45,914 1.019 15,998 11,077 346 555 2,515 1.505 23,645 4,589 4,064 525 663 1970—Dec. 9.. f47,009 566 23.786 19.333 306 429 3.023 695 17,137 4,676 4,029 647 844 \46,960 566 23,775 19.333 295 429 3.023 695 17,169 4,604 4,039 565 846 1971—Dec.n. / \ 6 6 7 7 , , 6 8 8 0 1 8 5 54 4 4 4 5 5 1 0, . 6 2 5 0 1 9 3 3 9 9, , 0 6 1 7 8 9 1 1 . . 9 9 5 5 5 5 6 6 , , 0 0 9 6 3 0 3 3 , , 4 3 4 7 1 1 1 1 4 4 4 4 1 1 0 0 , , 9 2 4 6 9 2 4 4 , , 1 1 4 3 1 8 3 3 . , 6 69 9 1 4 4 44 4 7 7 1 1 , , 5 5 2 2 3 8 1972—Dec.... 82,862 61.526 40,000 5,236 12,108 3,639 543 14,666 5,043 4.618 425 1,627 1973—Dec.. .. 92,391 66,810 43,919 5,701 12,319 3.210 1,661 17,647 5,931 5,501 430 2,003 1974—Ja.........n 89,900 63,871 41,556 5,229 12.321 3.210 1,555 18,040 6,067 5.618 449 1,922 Feb.. .. 91,857 64,100 41,992 5.192 12.322 3.210 1.384 19,715 6,249 5,839 410 1,793 Mar.... 95,572 65.527 43,412 5.192 12.329 3.210 1.384 22,056 6,571 6,171 400 1,418 Apr.. . . 97,368 67,154 45,175 5,020 12.330 3.210 1,419 22.103 6,816 6,399 417 1,295 May. .. 100,929 68,160 46,177 5.013 12.330 3.210 1,430 24,316 6,906 6,540 366 1,547 June... 103,731 69,994 47,430 5.013 12.330 3.655 1,566 24,854 7,173 6,810 363 1,710 July.... 106,757 71,091 48,447 5.013 12.330 3.655 1,646 26,517 7,338 6,961 377 1,811 Aug.. .. 109,751 70,970 48,400 4,940 12.330 3.655 1,645 29,224 7,523 7,157 366 2,034 Sept.... 110,366 72,601 50,107 4.880 12.330 3.655 1,629 27,783 8,051 7,658 393 1,931 Oct....... 111,742 73,658 50,831 4.880 12.330 3.867 1,750 27,900 8,125 7.694 431 2,059 Nov.*.. 114,484 74,888 51,686 4,906 12.330 3.867 2,099 29.103 8,408 7,927 481 2,135 Dec.* 12 1 1 1 17 6 , , 6 7 3 9 3 2 7 76 6 , . 3 2 1 1 5 0 5 5 2 2, ,8 80 02 4 5 5 , , 0 0 5 5 5 9 1 1 2 2. . 3 3 3 3 0 0 3 3 . .8 86 67 7 2 2 , , 1 2 5 5 4 7 2 3 9 0 . , 6 29 3 3 8 8 8, , 8 8 7 6 1 9 8 8 , ,3 3 7 7 1 2 4 4 9 9 8 9 2 2 , , 0 1 7 5 3 6 1975—Jan.*... 115,837 .............. 75,710 51,691 5,177 12,457 3.867 2,518 29,412 8,715 8,207 508 1,999 1 Includes (a) liability on gold deposited by the IMF to mitigate the i° Includes $101 million increase in dollar value of foreign currency impact on the U.S. gold stock of foreign purchases for gold subscriptions liabilities resulting from revaluation of the German mark in Oct. 1969 as to the IMF under quota increases, and (b) U.S. Treasury obligations at follows: liquid, $17 million, and other, $84 million. cost value and funds awaiting investment obtained from proceeds of sales 11 Data on the second line differ from those on first line because cer­ of gold by the IMF to the United States to acquire income-earning assets. tain accounts previously classified as official institutions are included 2 Includes BIS and European Fund. with banks; a number of reporting banks are included in the series for 3 Derived by applying reported transactions to benchmark data; the first time; and U.S. Treasury securities payable in foreign currencies breakdown of transactions by type of holder estimated for 1963. issued to official institutions of foreign countries have been increased in 4 Excludes notes issued to foreign official nonreserve agencies. value to reflect market exchange rates as of Dec. 31, 1971. 5 Includes long-term liabilities reported by banks in the United States 12 See note 3 to Table 6. and debt securities of U.S. Federally-sponsored agencies and U S. cor­ porations. Note.—Based on Treasury Dept, data and on data reported to the 6 Includes short-term liabilities payable in dollars to commercial banks Treasury Dept, by banks and brokers in the United States. Data correspond abroad and short-term liabilities payable in foreign currencies to commer­ generally to statistics following in this section, except for the exclusion cial banks abroad and to other foreigners. of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign 7 Includes marketable U.S. Treasury bonds and notes held by commer­ official nonreserve agencies, the inclusion of investments by foreign cial banks abroad. official reserve agencies in debt securities of U.S. Federally-sponsored 8 Principally the International Bank for Reconstruction and Develop­ agencies and U.S. corporations, and minor rounding differences. Table ment and the Inter-American and Asian Development Banks. excludes IMF holdings of dollars, and holdings of U.S. Treasury ietters 9 Data on the 2 lines shown for this date differ because of changes of credit and nonnegotiable, non-interest-bearing special U.S. notes held in reporting coverage. Figures on first line are comparable with those by other international and regional organizations. shown for the preceding date; figures on second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 Canada A re m p L u a e b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 1971 50,651 30,134 3,980 1,429 13,823 415 870 1972. 61,526 34,197 4,279 1,733 17,577 777 2,963 1973. 66,810 45,717 3,853 2,544 10,884 788 3,024 1974- 63,871 43,270 3,945 2,446 10,479 838 2,893 64,100 42,391 4,262 2,744 10,878 1,000 2,825 65,527 42,772 4,195 2,887 11,631 1,249 2,793 67,154 42,638 4,309 3,532 12,360 1,402 2,913 68,160 42,961 4,302 3,384 12,988 1,620 2,905 69,994 43,200 4,201 4,006 13,992 1,854 2,741 71,091 43,002 4,125 3,951 15,209 2,055 2,749 70,970 42,292 3,953 4,127 15,526 2,272 2,800 72,601 42,675 3,819 4,421 16,182 2,850 2,654 73,658 43,041 3,809 3,986 17,186 2,947 2,689 74,888 43,223 3,710 3,619 18,475 3,204 2,657 J76.210 44,161 3,665 4,246 18,346 3,161 2,631 176,315 44,169 3,665 4,246 18,448 3,161 2,626 1975- 75,710 43,234 3,626 3,609 19,446 3,233 2,563 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short- and long-term liabilities to the official 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ institutions of foreign countries, as reported by banks in the United States; pean dependencies in Latin America. foreign official holdings of marketable and nonmarketable U.S. Treasury 3 Because of revisions, data on the two lines or columns shown for securities with an original maturity of more than 1 year, except for non­ this date differ. Figures on first line or column are comparable with those marketable notes issued to foreign official nonreserve agencies; and in­ shown for the preceding date; figures on second line or column are com­ vestments by foreign official reserve agencies in debt securities of U.S. parable with those shown for the following date. Revisions for months Federally-sponsored agencies and U.S. corporations. prior to Dec. will appear in the Apr. Bulletin. 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 6 Payable in dollars IMF Deposits End of period Total i Total Dem D an e d pos T it i s me 2 b T i c r l c U e l e a s r a t . t e s S i a f u s . i n r ­ 3 d y s O l t i h e a t o r h b m r e . t 4 r ­ P f r o e a c n y r i u e n c a i r i b g ­ e l n s e in m g v o e e n l s d t t ­ s Total Demand Time 2 b T i c l r c e U l e s a r a . t t S s i e a f u . s i n r ­ d y O s l t i h e a t r o h b m r e . t 7 r ­ 197 1 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 197 2 60,697 60,201 8,290 5,603 31,850 14,458 496 1,413 86 202 326 800 197 3 69,022 68,425 11,310 6,863 31,886 18,366 597 1,955 101 83 296 1,474 1974—Jan... 67,067 66,427 10,826 6,809 29,543 19,249 640 1,853 95 89 286 1,383 Feb... 69,239 68,470 11,477 6,855 30,274 19,864 770 1,693 77 63 232 1,321 Mar.. 72,790 72,024 11,656 6,986 31,444 21,938 766 1,151 96 63 227 765 Apr.., 74,787 74,080 11,981 7,324 32,676 22,099 706 1,109 60 57 209 783 May. 78,365 77,712 11,675 7,629 33,983 24,425 653 1,333 95 53 46 1,139 June. 80,687 79,895 12,860 8,276 34,038 24,721 792 1,593 106 66 91 1,330 July.. 83,610 82,944 12,227 8,661 34,178 27,877 666 1,685 121 66 51 1,448 Aug.. 86,642 85,897 11,848 9,091 33,179 31,778 746 1,861 81 68 146 1,567 Sept.. 87,388 86,693 12,771 9,220 33,467 31,235 696 1,840 128 69 75 1,569 Oct... 88,361 87,643 11,228 9,789 34,187 32,438 719 1,937 125 89 93 1,630 Nov.. 90,672 89,928 12,860 9,532 35,020 32,515 744 1,956 128 89 94 1,645 /92,713 91,947 14,062 10,115 35,190 32,580 766 1,900 139 101 25 1,633 Dec.? 193,448 92,681 14,053 10,111 35,190 33,327 766 1,981 139 105 25 1,711 1975—Jan.?. 91,195 90,475 12,336 10,199 36,921 31,019 721 1,885 123 104 25 1,633 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 9 Payable in dollars Payable in dollars End of period Total Dema D n e d posi T ts ime2 T b c i r c l e e U l a r s a t t . s e S i a f u s . n i r 3 ­ d y s O l t h i e a t o r h b m r e . t 4 r ­ P f r o e a c r n y i u e c n a i r i b g ­ e l n s e Total Dema D n e d posi T ts ime2 T bi c r c l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O t l h i e a t o r h b m r e . t ­ r 7 c P u f r a o r y r e i e a n n b i c g l i e n es 197 1 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32.311 3,177 165 197 2 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 197 3 67,067 11,209 6,780 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 127 1974—Jan.... 65,214 10.731 6,720 29,257 17,865 640 41,556 2,379 3,705 29,152 6,192 m Feb.. . 67,546 11,399 6,792 30,042 18,543 770 41,992 2,408 3,703 29,917 5,836 127 Mar... 71,639 11,559 6,924 31,217 21,173 766 43,412 2,631 3,800 31,064 5,790 127 Apr.. . 73,677 11.921 7,267 32,467 21,315 706 45,175 2,920 3,949 32.312 5,867 127 May... 77,033 11,580 7,576 33,937 23,287 653 46,167 2,352 4,025 33,731 5,931 127 Jun.. . 79,094 12,753 8,210 33,947 23,391 792 47,430 2,643 4,277 33,745 6,638 127 Jul.... 81,925 12,107 8,596 34,128 26,429 666 48,447 2,561 4,463 33,749 7,547 127 Aug... 84,781 11,767 9,023 33,033 30,212 746 48,400 2,473 4,447 32,687 8,665 127 Sept... 85,548 12,643 9,151 33,392 29,666 696 50,107 2,824 4,311 32,955 9,890 127 Oct... 86,425 11,104 9,700 34,094 30,808 719 50,831 2,168 4,483 33,634 10,418 127 Nov... 88,716 12.732 9,443 34,927 30,871 744 51,550 2,472 4,122 34,467 10,498 127 Dec.® 8 /90,814 13.922 10,014 35.165 30,946 766 52,671 2,947 4,330 34.656 10,610 127 191,466 13,914 10,006 35.165 31,615 766 52,802 2,951 4,325 34.656 10,742 127 1975—Jan.®.. 89,310 12,213 10,094 36,897 29,386 721 51,691 2,187 4,418 36,531 8,555 To banks 10 To other foreigners To banks Payable in dollars and other End of period Total Payable in Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 7 cates cates 1971. 14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972. 19,284 14,340 4,658 405 5 9,272 4,618 1,955 2,116 65 481 325 1973. 23,147 17,178 6,941 515 11 9,710 5,500 2,143 2,353 68 936 469 1974—Jan.............. 23,658 17,527 6,329 517 14 10,668 5,618 2,024 2,498 91 1,005 513 Feb.............. 25,554 19,072 6,853 526 32 11,662 5,840 2,139 2,563 93 1,045 642 Mar............. 28,226 21,417 6,573 511 54 14,279 6,171 2,356 2,613 98 1,104 639 Apr............. 28,503 21,524 6,603 683 63 14,174 6,400 2,398 2,635 92 1,274 579 May............ 30,866 23,800 6,913 795 82 16,010 6,540 2,315 2,756 124 1,346 526 June............ 31,664 24,190 7,692 1,004 95 15,398 6,810 2,419 2,929 107 1,355 665 July............. 33,478 25,978 7,110 1,165 204 17,499 6,961 2,436 2,967 175 1,383 539 Aug............. 36,381 28,606 6,897 1,426 200 20,083 7,156 2,397 3,150 145 1,464 618 Sept............. 35,442 27,214 7,098 1,576 258 18,282 7,659 2,722 3,264 179 1,495 568 Oct.............. 35,594 27,309 6,361 1,796 268 18,884 7,694 2,574 3,422 193 1,505 591 Nov............. 37,166 28,623 7,622 1,713 253 18,899 7,927 2,638 3,608 207 1,474 617 /38,143 29,132 8,265 1,882 232 18,753 8,372 2,710 3,802 277 1,583 639 Dec.**®........ \38,789 29,654 8,253 1,880 232 19,289 8,369 2,709 3,800 277 1,583 766 1975--Jan.®.......... 37,621 28,692 7,400 1,925 158 19,209 8,208 2,625 3,752 209 1,622 721 1 Data exclude ‘‘holdings of dollars” of the IMF. 7 Principally bankers’ acceptances, commercial paper, and negotiable 2 Excludes negotiable time certificates of deposit, which are included time certificates of deposit. in “Other short-term liabilities.” 8 See Note 3 to Table 6. 3 Includes nonmarketable certificates of indebtedness issued to official 9 Foreign central banks and foreign central govts, and their agencies, institutions of foreign countries. and Bank for International Settlements and European Fund. 4 Includes liabilities of U.S. banks to their foreign branches, liabilities 10 Excludes central banks, which are included in “Official institutions.” of U.S. agencies and branches of foreign banks to their head offices and foreign branches, bankers’ acceptances, commercial paper, and negotiable Note.—“Short term” refers to obligations payable on demand or having time certificates of deposit. an original maturity of 1 year or less. For data on long-term liabilities 5 U.S. Treasury bills and certificates obtained from proceeds of sales of reported by banks, see Table 9. Data exclude the holdings of dollars gold by the IMF to the United States to acquire income-earning assets. of the International Monetary Fund; these obligations to the IMF consti­ Upon termination of investment, the same quantity of gold was reac­ tute contingent liabilities, since they represent essentially the amount of quired by the IMF. dollars available for drawings from the IMF by other member countries. 6 Principally the International Bank for Reconstruction and Develop­ Data exclude also U.S. Treasury letters of credit and nonnegotiable, nonment and the Inter-American Development Bank. interest-bearing special U.S. notes held by the Inter-American Develop­ Includes difference between cost value and face value of securities in ment Bank and the International Development Association. IMF gold investment account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1973 1974 1975 Area and country Dec. Dec. June July Aug. Sept. Oct. Nov.* Dec.* 8 Jan.* Europe: Austria...................................................... 272 161 310 482 528 595 566 557 607 607 597 Belgium-Luxembourg.............................. 1,094 1,483 1,827 1,819 1,928 1,924 2,038 2,286 2,497 2,506 2,390 Denmark.................................................. 284 659 266 239 251 268 285 338 369 369 369 Finland..................................................... 163 165 174 203 229 219 223 262 266 266 463 France...................................................... 4,441 3,483 3,425 3,763 3,611 3,561 3,920 3,822 4,274 4,274 3,933 Germany.................................................. 5,346 13,227 13,528 12,602 11,873 9,337 8,623 9,102 9,421 9,421 9,948 Greece...................................................... 238 389 232 222 298 293 255 213 248 248 253 Italy.......................................................... 1,338 1,404 1,281 1,327 1,101 3,138 2,748 2,192 2,617 2,617 2,101 Netherlands.............................................. 1,468 2,886 2,352 2,232 2,234 2,498 3,009 3,177 3,234 3,234 3,208 Norway..................................................... 978 965 911 878 894 1,023 1,131 1,181 1,040 1,040 874 Portugal.................................................... 416 534 411 429 422 435 411 338 310 310 310 Spain......................................................... 256 305 324 362 303 377 347 332 382 382 379 Sweden...................................................... 1,184 1,885 1,211 1,160 1,049 1,096 1,071 1,103 1,138 1,138 1,132 2,857 3,377 6,386 7,216 7,850 8,388 8,847 9,378 10,007 10,007 9,601 Turkey...................................................... 97 98 125 134 106 100 121 102 152 152 169 United Kingdom..................................... 5,011 6,148 8,533 8,294 8,969 8,606 7,562 7,698 6,909 7,501 6,606 Yugoslavia................................................ 117 86 100 106 100 151 136 105 183 183 187 Other Western Europe!.......................... 1,483 3,352 2,701 2,851 2,829 3,122 3,329 3,432 4,051 4,051 3,103 U.S.S.R..................................................... 11 22 27 27 26 40 44 33 82 82 65 Other Eastern Europe............................. 81 110 126 133 147 149 136 138 208 206 172 Total.................................................. 27,136 40,742 44,249 44,479 44,749 45,320 44,803 45,789 47,995 48,596 45,861 Canada.......................................................... 3,432 3,627 3,550 3,595 3,250 3,754 4,226 3,725 3,512 3,507 3,405 Latin America: Argentina.................................................. 638 924 1,379 1,252 1,189 1,105 1,017 938 886 886 900 Bahamas 2................................................ 540 824 1,487 1,546 3,201 1,155 1,672 1,740 1,489 1,493 2,160 Brazil........................................................ 605 860 782 778 817 873 894 951 1,035 1,035 859 Chile.......................................................... 137 158 240 279 253 266 270 297 276 276 284 Colombia.................................................. 210 247 217 264 285 293 292 305 305 305 319 Cuba.......................................................... 6 7 6 7 6 7 6 7 7 7 6 Mexico...................................................... 831 1,285 1,412 1,411 1,610 1,643 1,731 1,731 1,772 1,772 1,741 Panama.................................................... 167 282 559 566 445 511 484 474 490 490 511 Peru.......................................................... 225 135 166 197 185 182 177 183 275 275 256 Uruguay.................................................... 140 120 121 122 115 120 128 140 147 147 152 Venezuela................................................. 1,078 1,468 2,708 2,600 2,999 3,217 2,932 2,773 3,238 3,238 2,868 Other Latin American republics............. 861 884 1,080 1,183 1,066 1,214 1,115 1,176 1,316 1,317 1,208 Netherlands Antilles and Surinam......... 86 71 124 92 103 123 138 135 158 158 155 Other Latin America............................... 44 359 450 671 825 549 478 111 462 510 909 Total.................................................. 5,568 7,626 10,732 10,964 13,099 11,256 11,335 11,627 11,856 11,910 12,329 Asia: China, People’s Rep. of (China Mainland) 39 38 33 39 40 40 43 45 50 50 50 China, Republic of (Taiwan).................. 675 757 688 772 842 822 797 808 818 818 977 Hong Kong.............................................. 318 372 462 470 490 621 470 551 530 530 558 India.......................................................... 98 85 225 172 131 158 140 156 261 261 204 Indonesia.................................................. 108 133 257 863 785 943 1,600 1,363 1,221 1,221 1,302 Israel......................................................... 177 327 256 226 211 217 218 279 386 386 414 Japan........................................................ 15,843 6,954 9,419 9,974 9,894 10,115 10,385 10,869 10,890 10,897 10,440 Korea........................................................ 192 195 262 215 277 304 313 309 385 384 315 Philippines................................................ 438 515 772 762 715 748 726 731 747 747 702 Thailand.................................................... 171 247 524 451 403 362 328 333 333 333 337 Other........................................................ 1,071 1,202 2,572 3,634 4,272 4,726 4,832 5,681 5,445 5,447 6,003 Total.................................................. 19,131 10,826 15,470 17,578 18,062 19,056 19,851 21,125 21,066 21,073 21,302 Africa: Egypt......................................................... 24 35 84 91 105 73 109 109 103 103 104 Morocco................................................. 12 11 39 54 63 79 73 59 38 38 71 South Africa............................................ 115 114 102 170 156 157 138 155 130 130 150 Zaire.......................................................... 21 87 58 46 46 43 41 82 84 84 66 Other......................................................... 768 808 1,911 2,042 2,258 2,893 2,973 3,199 3,196 3,197 3,272 Total.................................................. 939 1,056 2,193 2,403 2,627 3,244 3,333 3,604 3,551 3,551 3,664 Other countries: Australia................................................... 3,027 3,131 2,831 2,848 2,926 2,847 2,788 2,659 2,745 2,742 2,661 All other................................................... 51 59 69 58 68 72 71 86 89 89 88 Total.................................................. 3,077 3,190 2,900 2,906 2,994 2,918 2,859 2,845 2,834 2,831 2,748 Total foreign countries................................ 59,284 67,077 79,094 81,925 84,781 85,548 86,408 88,716 90,814 91,466 89,310 International and regional: International 3........................................... 951 1,627 1,250 1,328 1,512 1,479 1,610 1,677 1,632 1,710 1,610 Latin American regional......................... 307 272 222 248 257 256 227 208 200 202 226 Other regional4........................................ 156 57 122 108 93 103 100 71 68 69 50 Total.................................................. 1,413 1,955 1,593 1,685 1,861 1,840 1,937 1,956 1,900 1,981 1,885 Grand Total...................................... 60,697 69,022 80,687 83,610 86,642 87,388 88,345 90,672 92,713 93,448 91,195 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1972 1973 1974 1972 1973 1974 Area and country Area and country Apr. Dec. Apr. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus....................................... 2 3 9 19 10 Laos.............................................. 3 2 3 3 Iceland...................................... 9 9 12 8 11 Lebanon....................................... 60 55 55 62 68 Ireland, Rep. of........................ 15 17 22 62 53 Malaysia....................................... 25 54 59 58 40 Pakistan........................................ 58 59 93 105 108 Other Latin American republics: Ryukyu Islands (incl. Okinawa) 6 53 Bolivia....................................... 53 87 65 68 102 Singapore..................................... 45 77 53 141 165 Costa Rica................................ 70 92 75 86 88 Sri Lanka (Ceylon)..................... 6 5 6 13 13 Dominican Republic................ 91 114 104 118 137 Vietnam........................................ 185 135 98 98 Ecuador.................................... 62 121 109 92 90 Oil-producing countries ?........... 227 534 486 652 1,331 El Salvador............................... 83 76 86 90 129 Guatemala................................ 123 132 127 156 245 Haiti........................................... 23 27 25 21 28 Other Africa: Honduras.................................. 50 58 64 56 71 Algeria.......................................... 31 32 51 111 110 Jamaica..................................... 32 41 32 39 52 Ethiopia (incl. Eritrea)................ 29 57 75 79 118 Nicaragua................................. 66 61 79 99 119 Ghana........................................... 11 10 28 20 22 Paraguay................................... 17 22 26 29 40 Kenya........................................... 14 23 19 23 20 Trinidad and Tobago.............. 15 20 17 17 21 Liberia.......................................... 25 30 31 42 29 Libya............................................ 296 393 312 331 Other Latin America: Nigeria.......................................... 56 85 140 78 Bermuda.................................... (2) (2) 127 242 201 Southern Rhodesia...................... 2 2 1 2 1 British West Indies................... 23 36 100 109 Sudan............................................ 5 3 3 3 2 Tanzania....................................... 6 11 16 12 12 Other Asia: Tunisia.......................................... 7 10 11 7 17 Afghanistan............................... 17 25 19 22 Uganda......................................... 10 7 19 6 11 Burma........................................ 5 2 17 12 Zambia......................................... 7 28 37 22 Cambodia................................. 2 3 3 2 Jordan........................................ 2 4 4 6 All other: New Zealand............................... 27 30 34 39 33 1 Includes Bank for International Settlements and European Fund. 5 Represent a partial breakdown of the amounts shown in the other 2 Bermuda included with Bahamas through Dec. 1972. categories (except “Other Eastern Europe”). 3 Data exclude holdings of dollars of the International Monetary Fund. 6 Included in Japan after Apr. 1972. 4 Asian, African, and European regional organizations, except BIS and 7 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, European Fund, which are included in “Europe.” Syria, and United Arab Emirates (Trucial States). 8 See Note 3 to Table 6. 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Other Latin Japan Other other tions ers many dom Europe America Asia coun­ tries 1971.............................. 902 446 457 144 237 56 164 52 30 111 3 87 9 1 Q'7'^ 9 J1,000 562 439 93 259 87 165 63 32 136 1 32 10 \1,018 580 439 93 259 87 165 63 32 136 1 32 10 1973.............................. 1,467 761 706 310 296 100 165 66 245 132 5 78 16 1974—Jan..................... 1,496 821 675 310 275 90 165 65 236 119 2 78 10 Feb.................... 1,519 888 631 259 286 86 165 58 231 128 2 35 13 Mar................... 1,577 951 626 259 276 87 165 45 232 130 2 39 13 Apr.................... 1,690 1,025 665 294 282 89 165 56 227 152 2 50 13 May.................. 1,657 1,005 652 296 282 74 165 56 220 144 2 52 13 June.................. 1,650 974 676 321 283 73 165 56 220 144 2 77 12 July................... 1,671 978 693 319 299 75 171 56 233 142 2 77 13 Aug................... 1,516 1,005 511 118 316 77 170 60 47 142 1 77 13 Sept................... 1,404 920 484 95 316 73 170 60 47 123 1 70 13 Oct.................... 1,332 852 480 111 299 71 170 48 45 116 1 87 13 1,318 832 485 112 298 75 170 48 45 116 1 88 17 Dec.?................ 1,270 768 501 124 299 79 170 48 46 115 1 101 20 1975—Jan.?................. 1,366 769 598 223 303 71 170 47 40 118 1 200 22 1 Excludes central banks, which are included with “Official institutions.” 2 Data on the 2 lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 1975 Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.* Jan.* Europe; 7 7 7 7 7 7 9 9 10 10 10 10 11 Sweden............................................ 235 260 260 260 260 260 260 260 250 250 276 251 252 34 32 34 33 35 34 35 34 34 30 30 30 31 423 450 439 457 428 424 426 439 459 485 498 493 529 Other Western Europe................... 86 91 90 89 87 89 97 101 96 102 98 97 89 Eastern Europe............................... 5 5 5 5 5 5 5 5 5 5 5 5 5 Total......................................... 789 845 835 851 823 819 832 849 854 883 917 885 916 Canada................................................ 582 832 847 848 849 849 851 756 706 707 711 713 697 Latin America: Latin American republics............... 11 11 11 11 11 11 11 11 11 11 11 12 11 Other Latin America...................... 3 3 3 3 5 5 5 5 17 25 62 88 88 Total......................................... 14 14 14 14 16 16 16 16 28 36 74 100 99 Asia: 4,552 3,718 3,703 3,531 3,499 3,498 3,497 3,498 3,497 3,497 3,498 3,498 3,498 Other Asia....................................... 11 11 11 11 12 12 12 12 12 12 12 212 325 Total........................................ 4,563 3,729 3,714 3,542 3,510 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 158 157 157 157 157 157 156 151 151 151 151 151 151 All other............................................ 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries....................... 6,131 5,602 5,592 5,437 5,379 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 International and regional: International................................... 1 51 217 141 174 57 51 102 23 71 112 113 53 Latin American regional................ 48 49 49 44 41 60 75 71 68 52 67 61 61 Total......................................... 49 100 267 185 214 117 126 173 91 123 179 174 114 Grand total.............................. 6,179 5,702 5,859 5,622 5,594 5,493 5,516 5,479 5,3(>4 5,434 5,566 5,731 5,799 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 14). 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s o f L t i i n c t o i s u a a ­ l ns t B o a — nks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i c r f g n c a n a f c e d o c e e p e c r r s t s ­ t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c F a o n u p c o n o a r v a r i d n t m e p t , i c i e e f g s l e i r . s e ­ n , ­ Other 1971.............................. 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1 0*70 9 /15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 \15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973.............................. 20,726 20,064 7,689 271 4,555 2,863 4,307 4,156 3,912 662 428 119 115 1974—Jan..................... 21,101 20,298 7,391 303 4,400 2,688 4,387 4,108 4,412 802 467 162 173 Feb.................... 22,986 22,141 7,932 303 4,966 2,662 4,427 4,554 5,228 844 594 121 129 Mar................... 25,671 24,823 9,068 421 5,793 2,855 4,642 5,126 5,986 849 545 160 144 Apr.................... 26,580 25,723 9,578 346 6,141 3,090 4,805 5,810 5,529 857 589 99 169 May.................. 29,745 28,862 9,959 363 6,372 3,223 5,081 6,599 7,223 884 611 113 160 June.................. 32,253 31,296 11,494 386 7,743 3,364 5,107 7,584 7,111 957 687 130 141 July................... 33,532 32,529 10,924 475 6,848 3,601 5,152 9,163 7,290 1,003 626 207 170 Aug................... 35,057 34,252 11,634 448 7,809 3,377 5,295 9,459 7,864 805 461 180 164 Sept................... 33,885 32,968 10,606 507 6,720 3,379 5,245 9,538 7,579 918 468 217 233 Oct.................... 33,696 32,667 10,080 348 6,371 3,361 5,356 10,034 7,197 1,030 547 243 240 Nov.*............... 35,871 34,843 11,040 439 7,174 3,426 5,345 10,678 7,779 1,028 515 283 229 (37,846 36,636 11,383 418 7,406 3,559 5,636 11,188 8,429 1,210 668 289 253 Dec.*3............... \38,366 37,156 11,383 394 7,430 3,559 5,637 11,190 8,945 1,210 668 289 253 1975—Jan.*................. 38,004 36,787 10,958 352 6,981 3,554 5,564 11,026 9,238 1,288 718 351 219 1 Excludes central banks, which are included with “Official institutions.” age with those shown for the preceding date; figures on the second line 2 Data on the two lines shown for this date differ because of changes are comparable with those shown for the following date, in reporting coverage. Figures on the first line are comparable in cover- 3 See Note 3 to Table 6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1973 1974 1975 Area and country Dec. Dec. June July Aug. Sept. Oct. Nov.p Dec.**2 Jan.p Europe: Austria...................................................... 8 11 104 18 72 17 21 42 21 21 18 Belgium-Luxembourg.............................. 120 148 231 267 208 165 301 308 384 384 401 Denmark................................................... 59 48 65 45 49 51 59 45 46 46 54 Finland...................................................... 118 108 134 150 151 146 128 107 122 122 132 France....................................................... 330 621 731 703 760 637 485 791 673 673 867 Germany................................................... 321 311 422 372 379 342 332 438 588 589 390 Greece....................................................... 29 35 49 61 66 59 48 57 64 64 52 Italy........................................................... 255 316 572 437 441 354 340 340 345 345 351 Netherlands.............................................. 108 133 212 165 112 130 176 183 348 348 195 Norway..................................................... 69 72 91 103 136 113 94 97 119 119 115 Portugal.................................................... 19 23 32 30 24 26 35 25 20 20 16 Spain......................................................... 207 222 404 392 382 253 227 201 196 196 184 164 153 117 119 139 159 149 160 180 180 128 Switzerland............................................... 125 176 663 386 355 377 277 339 335 335 251 Turkey....................................................... 6 10 10 26 19 15 15 14 15 15 23 United Kingdom..................................... 997 1,459 2,361 2,260 2,513 2,112 1,486 2,131 2,203 2,402 2,663 Yugoslavia................................................ 22 10 20 26 25 28 24 28 22 22 38 Other Western Europe............................. 20 27 26 19 22 18 31 38 22 22 22 U.S.S.R...................................................... 41 46 47 35 30 21 27 28 46 46 44 Other Eastern Europe............................. 49 59 84 105 106 102 105 86 131 131 124 3,067 3,988 6,374 5,720 5,986 5,124 4,358 5,459 5,878 6,077 6,067 Canada.......................................................... 1,914 1,955 2,195 2,340 2,111 2,032 2,556 2,517 2,768 2,773 2,904 Latin America: Argentina.................................................. 379 499 673 686 704 695 679 704 720 720 783 Bahamas 1................................................ 519 875 1,887 1,558 2,085 2,485 2,791 2,616 2,944 2,940 2,864 Brazil......................................................... 649 900 1,477 1,507 1,522 1,534 1,476 1,493 1,415 1,415 1,265 Chile.......................................................... 52 151 187 224 231 250 256 291 290 290 303 Colombia.................................................. 418 397 522 601 679 665 686 675 713 713 706 Cuba.......................................................... 13 12 13 12 13 14 13 13 19 14 13 Mexico...................................................... 1,202 1,373 1,725 1,775 1,833 1,711 1,841 1,898 1,968 1,972 1,894 Panama..................................................... 244 266 387 394 401 410 405 402 497 507 612 Peru........................................................... 145 178 281 353 421 408 433 486 518 518 504 Uruguay.................................................... 40 55 40 59 50 47 46 63 63 63 75 Venezuela.................................................. 383 518 606 644 642 627 557 643 704 704 796 Other Latin American republics............. 388 493 676 691 701 712 725 810 852 852 873 Netherlands Antilles and Surinam......... 14 13 41 38 56 64 61 74 69 69 45 Other Latin America............................... 36 140 298 234 354 245 517 655 887 1,142 1,451 Total.................................................. 4,480 5,870 8,813 8,778 9,692 9,869 10,486 10,823 11,659 11,918 12,182 Asia: China, People’s Rep. of (China Mainland) 1 31 23 28 22 9 7 5 4 4 18 China, Republic of (Taiwan).................. 194 140 357 406 446 461 496 482 497 497 524 Hong Kong............................................... 93 147 208 200 271 243 214 238 223 223 203 India.......................................................... 14 16 18 20 34 17 19 16 14 14 19 Indonesia.................................................. 87 88 115 117 120 122 128 140 157 156 142 Israel.......................................................... 105 166 158 205 205 197 200 208 250 250 265 Japan........................................................ 4,152 6,400 10,845 12,397 12,812 12,378 11,669 12,350 12,439 12,496 11,810 Korea........................................................ 296 403 620 641 706 733 760 835 955 955 1,116 149 181 302 295 348 340 346 324 371 371 300 Thailand.................................................... 191 273 421 427 429 436 414 416 441 441 374 Other......................................................... 300 394 713 820 681 669 669 666 771 771 739 Total.................................................. 5,584 8,238 13,780 15,556 16,073 15,605 14,921 15,680 16,121 16,178 15,508 Africa: Egypt......................................................... 21 35 66 68 83 97 93 91 111 111 106 Morocco................................................... 4 5 5 14 10 10 11 12 18 18 19 South Africa........................................... 143 129 202 213 238 243 282 299 329 329 364 Zaire.......................................................... 13 60 91 93 97 94 107 101 96 96 31 Other......................................................... 118 159 273 286 275 311 312 291 299 299 265 Total.................................................. 299 388 637 675 702 755 806 795 854 854 785 Other countries: 291 243 383 400 415 422 478 492 466 466 433 40 43 70 63 77 76 91 104 99 99 125 Total.................................................. 330 286 453 463 492 498 569 597 565 565 558 Total foreign countries................................ 15,674 20,725 32,253 33,531 35,056 33,883 33,696 35,870 37,845 38,365 38,003 International and regional........................... 3 1 1 1 1 2 1 1 1 Grand total....................................... 15,676 20,726 32,253 33,532 35,057 33,885 33,696 35,871 37,846 38,366 38,004 1 Includes Bermuda through Dec. 1972. foreigners, where collection is being made by banks and bankers for 2 See Note 3 to Table 6. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and Note.—Short-term claims are principally the following items payable their customers in the United States. Excludes foreign currencies held on demand or with a contractual maturity of not more than 1 year: loans by U.S. monetary authorities, made to, and acceptances made for, foreigners; drafts drawn against Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo a u r y r i e r n a i e b g n l n e ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r c t o r o A t i n h e l n e s l - r 2 Official Other term cies Total institu­ Banksi foreign­ claims tions ers 1971................. 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 19723 .............. ( 1 4 5 , , 9 0 5 6 4 3 4 4 , , 5 5 3 8 9 8 8 8 3 4 3 4 4 4 3 3 0 0 3 3 , , 2 3 7 1 6 4 4 3 3 7 5 5 4 4 0 0 1 1 4 5 5 0 7 7 0 0 3 4 4 4 0 0 6 6 2 1 , , 0 9 2 96 0 3 3 1 5 9 3 9 88 1 1 8 5 50 1 3 4 1973................. 5,962 5,412 1,145 574 3,692 478 72 148 1,107 490 2,112 251 1,320 534 1974—Ja n 5,907 5,359 1,132 563 3,665 469 79 147 1,109 486 2,078 259 1,319 510 Feb....... 5,960 5,359 1,187 584 3,588 522 79 154 1,166 457 2,087 256 1,328 512 Mar.. . . 6,134 5,518 1,262 640 3,616 541 75 157 1,271 473 2,151 256 1,336 491 Apr....... 6,742 6,099 1,552 734 3,814 567 76 201 1,556 478 2,365 254 1,357 530 May__ 6,788 6,171 1,549 755 3,867 550 67 224 1,541 467 2,428 241 1,365 521 June__ 7,043 6,431 1,600 775 4,056 546 66 222 1,669 496 2,481 244 1,416 515 July. 7,072 6,460 1,469 891 4,099 545 67 249 1,586 498 2,546 269 1,406 517 Aug....... 7,011 6,404 1,434 895 4,075 539 68 285 1,527 503 2,520 269 1,399 509 Sept...... 6,993 6,380 1,418 853 4,108 542 71 266 1,535 543 2,473 247 1,427 502 Oct........ 7,244 6,565 1,440 914 4,211 608 71 333 1,725 523 2,489 264 1,396 515 Nov.?... 7,261 6,571 1,373 933 4,265 618 72 339 1,652 506 2,584 257 1,392 531 Dec.?... 7,161 6,485 1,329 936 4,221 609 67 332 1,578 486 2,605 260 1,359 542 1975—Jan.?... 7,275 6,625 1,367 968 4,290 595 54 323 1,669 475 2,616 248 1,388 556 1 Excludes central banks, which are included with “Official institutions.” reporting coverage. Figures on the first line are comparable in coverage 2 Includes international and regional organizations. with those shown for the preceding date; figures on the second line are 3 Data on the 2 lines shown for this date differ because of changes in comparable with those shown for the following date. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S., Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1972............................. 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 1973............................. 305 -165 470 465 6 18,569 13,810 4,759 1,474 2,467 -993 1,729 1,554 176 1974?........................... -451 125 -577 -645 69 15,305 13,590 1,715 1,045 3,285 -2,241 1,899 144 181 1974—Jan................... -432 20 -452 -472 19 1,717 1,454 263 71 364 -292 209 207 2 Feb.................. -45 31 -77 -37 -39 1,202 1,189 13 100 145 -45 206 206 -1 Mar.................. 157 166 -10 -10 1,672 1,484 188 102 398 -295 167 183 — 16 Apr.................. -237 -82 -155 -171 16 1,126 904 222 103 323 -219 189 155 34 May................. -28 29 -57 -7 -50 903 852 51 89 154 -64 173 174 -2 June................. -101 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 July.................. 23 9 14 14 1,048 1,054 -6 94 251 — 158 128 116 12 Aug.................. -37 47 -84 -73 -11 1,398 1,130 269 59 214 -155 146 117 29 Sept.................. -116 -82 -33 -60 27 1,360 1,180 180 72 152 -80 145 100 45 Oct................... 70 32 38 38 1,508 1,363 145 86 362 -276 89 152 -63 Nov.?.............. 132 57 76 25 50 1,415 1,311 103 92 170 -78 124 102 22 Dec.?............... 162 -5 167 150 17 780 744 36 101 481 -380 117 87 30 1975—Jan.?............... 68 -60 127 118 9 1,151 891 260 126 1,172 -1,046 147 156 -9 i Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur­ Net pur­ Ger­ Nether­ Switzer­ United Other Total Latin Period chases Sales chases or France many lands land King­ Europe Europe Canada America Asia Other1 sales (—) dom 197 2 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 197 3 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 1974*......... 7,395 7,085 310 203 29 330 36 -262 50 397 -6 -33 58 10 1974—Jan.. . 976 802 174 68 4 37 43 28 23 202 -27 -42 33 9 Feb.., 743 586 157 39 5 54 40 -6 33 165 * 1 -9 1 Mar.. 896 846 49 14 -26 40 24 14 25 91 -21 9 -29 -1 Apr.., 577 559 19 22 17 35 -3 -14 -35 21 -10 2 3 2 May.. 576 591 -15 18 7 29 5 -36 -5 19 -7 -15 -14 2 June.. 521 513 8 -15 8 33 11 -18 -3 16 13 -7 -15 2 July. . 507 508 -1 13 5 39 -9 -48 3 3 10 -2 -14 2 Aug.., 579 500 79 19 18 16 15 9 -11 65 14 9 -10 * Sept.. 447 443 4 -9 17 21 -6 -21 -3 -1 6 4 -6 1 Oct... 613 695 -82 17 -30 9 -39 -56 11 -89 3 2 9 -7 Nov.p, 546 616 -71 5 1 -2 -35 -43 4 -70 -2 -5 5 1 Dec.p. 414 427 -12 13 13 20 -10 -71 9 -25 14 10 -11 1975—Jan.*. 730 528 202 34 17 43 16 116 17 -12 79 1 Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 2 1,881 336 77 74 135 367 315 1,303 82 22 323 148 197 3 1,948 201 -33 -19 307 275 473 1,204 49 44 588 52 1974*................... 1,402 96 34 183 96 349 64 694 50 43 459 146 1974—Ja n 89 3 25 23 117 159 14 1 -104 18 Feb........... -144 1 45 -15 30 -2 -5 -119 -47 Mar.......... 139 1 -79 -6 -81 -1 6 -1 215 Apr........... 203 60 23 17 114 4 -1 * 86 May......... 66 10 26 1 59 3 5 3 -3 June......... 242 5 116 64 -17 185 1 4 -3 56 July.......... -5 -1 72 36 -11 100 1 5 7 10 -128 Aug.......... 190 1 1 29 -9 21 2 4 199 -36 Sept.......... 176 1 -1 54 -3 55 4 2 -15 130 Oct........... 226 10 -1 6 -5 25 18 5 100 79 Nov.25. . . . 174 4 2 -20 -6 -23 11 1 349 -163 Dec.*........ 48 1 -4 54 52 -4 17 45 -61 1975—Jan. * 61 62 74 -1 152 -177 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance di­ of U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1972................ -622 -90 -532 505 -635 -69 -296 -66 29 311 314 1973................ -818 139 -957 -141 -569 -120 -168 3 37 1974*.............. -2,060 -60 -2,000 -588 -1,529 -93 180 7 22 312 339 286 336 1974—Jan....... -291 -4 -287 -81 -204 -2 -1 -1 2 372 405 Feb___ -46 6 -52 -62 -11 -9 32 -4 1 Mar.... -311 4 -315 -24 -288 -15 10 * 3 310 364 Apr.. .. -185 3 -188 -49 -157 6 12 * * 316 243 May... -66 5 -71 -26 -35 -22 10 * 3 290 255 June... -108 3 -110 -78 -121 -6 94 1 * 333 231 July.... -146 1 -147 -63 -108 -1 24 — 1 3 Aug---- -125 2 -127 -35 -126 -9 42 — 1 1 1974-Mar........................... 383 225 Sept---- -35 12 -47 -41 -37 5 22 1 3 354 241 Oct....... -340 2 -342 -81 -244 * -18 — 1 2 298 178 Nov.2’.. -56 3 -59 -21 -8 -14 21 2 3 293 193 Dec.*. . -350 -95 -255 -27 -190 -25 -24 12 * 1975—Jan.*... -1,056 -572 -484 -41 -410 -28 -26 20 * Note.—Data represent the money credit balances and money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. a MARCH 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies......................... 1971—Dec. 59,807 4,753 2,300 2,453 53,296 11,210 23,520 1,164 17,401 1,758 1972—Dec. 78,202 4,678 2,113 27565 71,304 11,504 35,773 1,594 22,432 2,220 1973—Dec., 121,866 5,091 1,886 3,205 ill,974 19,177 56,368 2,693 33,736 4,802 1974—Jan.. 123,871 4,660 1,555 3,105 114,562 19,490 57,663 2,891 34,518 4,649 Feb.. 127,246 4.409 1,612 2,797 117,755 20,357 57,894 3,144 36,360 5,081 Mar. 136,983 7,812 5,334 2,478 123,997 227397 60,563 3,539 37,497 5,174 Apr.. 140,018 5,978 3,502 2,476 128,823 23.119 62,901 3,753 39,050 5,217 May. 145,916 7,893 5,327 2,566 132,513 24,583 64,693 3,703 39,534 5,510 June. 147,465 6,775 4,093 2,682 134,954 25.120 64,441 3,610 41,783 5,736 July. 145,004 6.409 3,795 2,614 132,885 25,726 61.921 3,688 41,549 5,710 Aug. 148,568 9,455 6,957 2,498 133,235 26,413 60.468 3,422 42,931 5.878 Sept. 147,643 6.619 3,975 2,645 134,845 26,321 61,102 3,720 43,701 6,179 Oct.r 145,759 4,878 2,244 2,634 134,921 26,929 59.468 3,848 44,676 5,959 Nov., 150,070 7.279 4,686 2,592 136,713 28,353 58,684 4,018 45,658 6,078 Dec.. 151,529 6.280 3,846 2,434 138,960 27,536 60,220 4,075 47,129 6,289 Payable in U.S. dollars. 1971—Dec.. 39,095 4,501 2,294 2,207 34,041 6,658 17,307 861 9,215 553 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—Dec.. 79,445 4,599 1,848 2,751 73,018 12.799 39,527 1,777 18,915 1,828 1974—Jan.. 81,918 4,186 1,518 2,668 75,993 13,245 40,661 2,006 20,021 1,799 Feb.. 83,963 4,004 1,557 2,448 78,013 13,785 40.922 2,211 21,094 1.946 Mar., 92,908 7,394 5,250 2,143 83,572 15.799 43,273 2,487 22,013 1,941 Apr.. 94,290 5.619 3,454 2,165 86,483 16,043 44,919 2,835 22,685 2,188 May. 100,264 7,547 5,279 2,268 90,202 16,890 47,373 2,841 23,099 2,514 June. 101,702 6,453 4,043 2,410 92,630 17,478 47,819 2,803 24,529 2,619 July. 101,502 6,118 3,746 2,373 92,693 18,480 46,394 2,889 24,929 2,691 Aug. 105,694 9,143 6,904 2,239 93,672 19,679 45,627 2,780 25,586 2.879 Sept. 104,292 6,342 3,917 2,426 94,901 19,412 46,322 2,873 26,293 3,049 Oct.r 101,859 4,596 2,187 2,409 94,316 19,757 44,691 3,006 26,862 2.947 Nov., 104,902 6,972 4,632 2,340 94,891 20,610 43,713 3,192 27,376 3,038 Dec.. 105,617 5,984 3,810 2,174 96,478 19,665 45,004 3,289 28,520 3,155 IN UNITED KINGDOM Total, all currencies.......... 1971—Dec.. 34,227 2,693 1,230 1,464 30,675 5,690 15,965 473 8.546 859 1972—Dec.. 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1,018 1973—Dec., 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 2.183 1974—Jan.. 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 2,087 Feb., 63,585 1,477 616 861 59,792 9,209 34,813 916 14,853 2,317 Mar. 68,07€ 3,070 2,319 751 63,020 10,706 36,192 887 15,235 1,986 Apr., 68,959 2,589 1,806 783 64,238 10,819 36,775 1,073 15,572 2,131 May. 71,982 3,792 2,969 823 66,008 11,759 37,920 889 15,439 2.183 June. 71,305 3,661 211X2 949 65,517 11,886 36,468 812 16,352 2,126 July. 69,197 3,309 2,468 840 63,711 12,486 34,575 718 15,932 2,177 Aug., 70,382 4,008 3,266 741 64,087 12,790 33,929 666 16,701 2,287 Sept. 70,965 3,494 2,721 774 64,962 12,436 34,804 829 16,893 2,509 Oct.. 68,123 1,873 1,050 823 63,914 12,386 33,500 887 17,141 2,336 Nov. 69,137 3,387 2,568 818 63,571 13,122 32,128 753 17,567 2,179 Dec., 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 2,445 Payable in U.S. dollars. 1971—Dec. 24.210 2,585 21,277 $,135 12,572 4,571 348 1972—Dec., 30,257 2.146 27,664 4,326 17,874 5,464 446 1973—Dec.. 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—Jan.. 42,131 1,368 39,932 6,825 25,098 8,010 830 Feb., 41,762 1,384 39,409 6,902 24,415 8,093 969 Mar. 46,062 2,967 42,212 8,240 25,365 8,608 882 Apr., 46,419 2,499 42,895 8,386 25,768 8,741 10,24 May, 49,654 3,693 44,825 9,285 26,994 8.546 1,135 June, 49,363 3,562 44,674 9,425 26,147 9,103 1,126 July. 48,158 3,221 43,798 9,932 24,698 9,169 1,138 Aug. 49,406 3,915 44,269 10,529 24,500 9,241 1,222 Sept. 50,075 3,408 45,327 10,305 25,564 9,458 1,339 Oct.. 47,968 1,783 44,873 10,234 25,125 9,514 1,312 Nov. 48,710 3,277 44,198 10,796 23,551 9,852 1,235 Dec. 49.211 3.146 44,693 10,265 24,326 10,102 1,372 IN BAHAMAS AND CAYMANS * Total, all currencies........................... 1971—Dec. 8,234 1,274 496 111 6$871 3,620 3,251 90 1972—Dec. 12,642 1,486 214 1,272 10,986 6,663 4,322 170 1973—Dec. 23,771 2,210 317 1,893 21,041 12,974 8,068 520 1974—Jan.. 24,071 2,108 273 1,835 21,439 13.013 8,425 524 Feb. 25,657 1,874 167 1,707 23,253 14,226 9,026 530 Mar. 28,444 3,358 1,971 1,386 24,475 15,404 9,071 611 Apr. 28,776 2,388 954 1,434 25,765 16,086 9,679 623 May 30,862 3,164 1,698 1,467 26,953 17,035 9,918 744 June 31,217 2,262 816 1,446 28,168 17,643 10,524 787 July. 30,401 2,125 615 1,510 27,461 16,821 10,640 815 Aug. 32,248 4,305 2,834 1,471 27,164 16,156 11,009 779 Sept. 30,078 2,033 469 1,564 27,189 16.013 11,177 856 Oct.1 30,028 1,876 380 1,495 27,362 16,279 11,083 790 Nov. 32,207 2,827 1,343 1,484 28,497 17,192 11,305 883 Dec. 231,512 1,845 463 1,382 28,851 16,853 11,998 815 Digitized for FRASER For notes see p. A-76. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 658 2,403 54,679 10,743 29,765 5,472 8,699 2,069 ,1971 —Dec. .. .Total, all currencies 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 , ,1972—Dec. 121 5,126 1,158 3,968 111,615 18,213 65,625 10,276 17,563 5,125 .........1973—Dec. 123 5, 1,685 3,664 113,750 18,505 r67,726 *•9,823 '17,696 4,741 .........1974—Jan. 127 5,! 2,023 3,911 116,392 19,307 '■67,531 *•10,373 *•19,181 4,919 136 6, 2,119 4,671 124,885 21,073 '•71,736 *-10,746 '21,330 5,308 140 2,307 4,652 127,584 22,688 r71,232 *•11,612 '22,052 5,474 145 2,938 5,057 1-31,976 23,941 *•74,193 *•12,187 '21,655 5,944 147 3,009 5,540 132,326 24,234 *•71,692 *•14,388 '22,013 6,589 145 4,373 5,757 128,565 25,279 '66,753 *15,130 '21,403 6,309 .....................July 148 4,011 5,296 132,738 26,000 68,750 16,304 21,684 6,523 147 9,911 4,988 4,923 131,015 26,353 66,060 17,488 21,114 6,718 145 5,761 4,596 128,866 26,616 62,580 18,171 21,499 6,536 150 6,054 5,652 131,629 27,754 63,576 19,979 20,320 6,736 151 5,481 6,173 132,943 26,950 65,683 20,133 20,178 6,931 40 503 2,121 37,024 6,624 21,107 4,391 4,901 1,250 .........1971—Dec. .Payable in U.S. dollars 54; 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 , .1972—Dec. 80 4,544 993 3,550 73,189 12,554 "43,641 *7,491 9,502 2,611 .........1973—Dec. 82, 1,556 3,270 74,900 12,736 *•44,903 *7,432 '9,828 2,459 .......1974—Jan. 84; 1,870 3,559 76,745 13,329 *•44,438 *•8,045 '10,933 2,441 .....................Feb. 93. 1,917 4,301 84,378 15,071 *48,886 *•8,475 '11,945 2,811 94; 2,127 4,262 85,617 15,783 *•47,847 '9,195 '12,792 2,913 ioo; 2,741 4,664 89,846 16,694 r50,848 *•9,817 '12,488 3,461 102; 2,800 5,135 90,357 17,070 *•48,909 *•11,630 '12,748 4,009 102; 4,160 5,334 89,228 18,404 *•45,668 *•12,437 '12,719 3,673 .....................July 106; 3,820 4,853 94,154 19,449 48,379 13,508 12,819 3,943 105; 4,763 4,461 92,640 19,614 46,017 14,533 12,476 4,078 103; 5,558 4,255 90,105 19,478 42,664 15,076 12,887 3,891 107; 5,828 5,192 92,255 20,280 43,134 16,789 12,052 3,976 107; 5,314 5,795 92,470 19,338 43,671 17,392 12,068 3,949 IN UNITED KINGDOM 34, 109 1,544 31,814 3,401 18,833 4,454 5,126 760 .........1971—Dec. .. .Total, all currencies 43; 113 1,340 41,020 2,961 24,596 6,433 7,030 994 .....1972—Dec. 61 j 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .........1973—Dec. 63, 2,429 346 2,083 59,356 4,350 36,796 7,880 10,332 1,941 .........1974—Jan. 63 j 2,573 269 2,303 58,956 4,193 35,355 8,295 11,112 2,057 68 j 3,167 353 2,814 63,096 4,587 37,700 8,592 12,217 1,813 68, 3,123 409 2,714 63,914 4,975 36,524 9,240 13,175 1,922 71, 3,729 749 2,979 66,156 4,890 39,596 9,273 12,398 2,097 71, 3 606 3,138 65,429 4,913 36,711 11,289 12,516 2,132 69, 3; 439 611 2,828 63,557 5,099 34,293 11,643 12,521 2,201 70, 3,701 713 2,988 64,309 4,794 33,920 12,737 12,858 2,373 70, 3,503 635 2,867 64,919 5,428 33,766 13,544 12,181 2,543 68, 3,227 683 2,544 62,621 5,237 30,621 14,051 12,712 2,275 69, 4 — 889 3,487 62,397 5,071 30,352 15,454 11,521 2,363 69, 3 i 978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 24, 1,405 23 1,383 22,852 2,164 13,840 3,666 3,181 372 .Payable in U.S. dollars 30, 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 .........1972—Dec. 39, 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 839 .........1973—Dec. 40, 2,200 329 1,871 37,884 2,846 22,770 6,006 6,262 895 .........1974—Jan. 40, 2,346 243 2,103 37,579 2,729 21,330 6,476 7,044 1,006 45, 2,927 329 2,598 41,708 3,063 24,164 6,830 7,650 969 46, 2,878 384 2,494 42,453 3,234 23,207 7,401 8,612 992 49, 3,481 724 2,757 44,625 3,083 26,010 7,468 8,064 1,195 48, 3,516 579 2,937 44,214 3,255 23,669 9,137 8,155 1,239 48, 3.176 568 2,608 43,528 3,364 22,287 9,550 8,326 1,314 49, 3,448 692 2,756 44,654 3,278 22,558 10,437 8,382 1,380 50, 3.177 605 2,572 45,550 3,667 22,818 11,035 8,030 1,486 48, 2,988 651 2,337 44,033 3,690 20,203 11,444 8,696 1,294 49, 4,037 865 3,172 44,256 3,557 20,200 12,808 7,691 1,375 49, 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 IN BAHAMAS AND CAYMANS l 8, 747 7,305 1,649 4,539 1,116 183 .........1971—Dec .. .Total, all currencies 12, 1,220 11,260 1,818 8,105 1,338 163 .........1972—Dec. 23, 1,573 21,747 5,508 r14,563 '1,676 451 24, 1,931 21,714 5,266 *•14,722 '1,726 425 25. 2,244 22,979 5,587 *•15,448 '1,944 435 28; 2,351 25,551 6,608 *•16,853 '2,089 543 28; 2,283 26,015 7,102 *•16,809 '2,104 479 30; 2,567 27,704 8,255 *•17,217 '2,231 591 31; 2,855 27,723 7,642 *17,593 '2,488 639 30 3,684 26,037 7,663 *"16,223 '2,151 681 32, 2,797 28,713 8,124 *■18,403 '2,186 738 30; 3,651 25,694 7,142 '16,259 '2,293 733 30; 4,219 25,044 7,262 15,650 2,132 765 32 4,231 27,196 8,629 16,427 2,139 780 231 4,489 26,242 7,808 16,426 2,008 781 Digitized for FRASER see p. A-76. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments i ments 1 1972. 325 50,934 215,530 1973. 251 52,070 17,068 1969................... 1,491 1,062 161 183 86 66 3 534 1974. 418 55.600 16.838 1,141 697 150 173 121 372 443 1974—Feb.. 542 50,255 17,039 19712 / 1 1 1 , , 6 5 4 0 8 7 1 1 , , 0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 7 80 7 4 5 4 8 3 7 Mar.. 366 51,342 17,037 A M p a r y . . . 4 5 2 1 9 7 5 5 4 2 , , 1 6 9 4 5 2 1 1 7 7 , , 0 0 2 2 1 6 19722 / 1 l 2 , ,3 9 7 6 4 5 1 1 , ,4 9 4 1 6 0 1 5 69 5 3 3 4 0 0 7 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 June., 384 54,442 17,014 July.. 330 54,317 16,964 1973—Dec......... 3,184 2,603 37 431 113 1,128 775 Aug.. 372 53,681 16,917 Sept.. 411 53,849 16,892 1974—Jan.......... 2,858 2.284 59 365 149 1,091 772 Oct... 376 54,691 16,875 Feb......... 3,260 2,624 65 368 203 1,229 868 Nov.. 626 55,908 16,865 Mar......... 3,701 3,027 99 358 218 1,373 1,029 Dec.. 418 55.600 16.838 Apr......... 3,587 2,981 60 339 209 1,486 922 May........ 3,683 3,051 76 331 227 1,442 979 1975—Jan... 391 58,001 16,837 June........ 3,677 3,065 62 369 181 1,419 926 Feb. , 409 60,864 16,818 July........ 3,787 3,239 74 341 133 1,442 828 Aug......... 3,521 2,958 51 368 144 1,437 870 Sept........ 3,066 2,483 30 363 189 1,195 864 1 Marketable U.S. Treasury bills, certificates of in­ Oct.......... 2,681 2,109 25 331 216 1,119 835 debtedness, notes, and bonds and nonmarketable U.S. Nov........ 2,953 2,355 15 325 258 1,283 922 Treasury securities payable in dollars and in foreign Dec.*___ 3,199 2,517 56 402 223 1,427 905 currencies. 2 The value of earmarked gold increased because of the changes in par value of the U.S. dollar in May 1972, and 1 Negotiable and other readily transferable foreign obligations payable on demand in Oct. 1973. or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. Note.—Excludes deposits and U.S. Treasury securities 2 Data on the 2 lines for this date differ because of changes in reporting coverage. held for international and regional organizations. Ear­ Figures on the first line are comparable in coverage with those shown for the preceding marked gold is gold held for foreign and international date; figures on the second line are comparable with those shown for the following date. accounts and is not included in the gold stock of the United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 22. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter’s name 1970—Dec....................... 2,677 2,182 496 4,160 3,579 234 348 1971—Mar...................... 2,437 1,975 462 4,515 3,909 232 374 June..................... 2,375 1,937 438 4,708 4,057 303 348 Sept...................... 2,564 2,109 454 4,894 4,186 383 326 J 2,704 2,229 475 5,185 4,535 318 333 Dec....................... 1 2,763 2,301 463 5,000 4,467 289 244 1972—Mar...................... 2,844 2,407 437 5,173 4,557 317 300 June..................... 2,925 2,452 472 5,326 4,685 374 268 Sept...................... 2,933 2,435 498 5,487 4,833 426 228 Dec.1. ................ J 1 3 3 , , 4 11 5 9 3 2 2 , ,9 6 6 3 1 5 4 48 92 4 6 5, , 7 3 2 6 1 6 5 5 , ,6 07 9 4 9 4 3 1 93 0 2 2 3 7 7 4 1973—Mar...................... 3,375 2,874 502 7,149 6,262 458 429 June..................... 3,375 2,807 568 7,433 6,574 499 361 Sept...................... 3,670 2,971 698 7,788 6,849 528 411 Dec....................... 4,080 3,314 765 8,556 7,645 484 428 1974—Mar...................... 4,507 3,629 878 10,570 9,643 400 528 June..................... 5,188 4,173 1,015 11,165 10,235 420 510 Sept.*................... 5,688 4,653 1,035 10,722 9,802 420 550 1 Data on the 2 lines shown for this date differ preceding date; figures on the second line are compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 75 23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1972 1973 1974 1792 1973 1974 Dec. Dec. Mar. June Sept.? Dec. Dec. Mar. June Sept.? Europe: Austria.................................................... 2 3 4 12 18 19 17 16 17 15 Belgium-Luxembourg........................... 83 136 226 405 485 73 106 153 139 114 Denmark................................................ 7 9 17 18 23 29 46 37 27 25 Finland................................................... 4 7 8 9 12 25 44 42 80 91 France.................................................... 167 168 161 204 192 231 310 413 537 492 Germany, Fed. Rep. of......................... 164 236 238 222 249 195 284 337 345 322 Greece.................................................... 15 40 21 28 28 35 51 87 76 69 Italy.......... .......................................... 121 116 133 143 150 202 239 330 409 432 Netherlands............................................ 109 125 114 104 114 84 112 103 126 143 Norway.................................................. 14 9 9 8 10 16 18 22 35 32 Portugal.................................................. 4 13 24 17 20 19 50 112 101 69 Spain...................................................... 81 77 68 56 56 157 244 414 420 425 Sweden................................................... 13 48 43 52 40 57 71 74 106 97 Switzerland............................................ 105 103 94 114 105 82 101 90 78 155 Turkey.................................................... 4 18 26 28 38 48 34 41 46 41 United Kingdom................................... 1,107 932 1,123 1,219 1,405 1,223 1,543 1,835 1,869 1,767 Yugoslavia.............................................. 7 28 31 36 34 12 49 30 41 39 Other Western Europe.......................... 2 3 3 6 7 12 15 19 23 20 Eastern Europe...................................... 3 31 26 31 78 42 104 79 97 89 Total................................................ 2,013 2,103 2,371 2,712 3,062 2,561 3,437 4,232 4,571 4,438 Canada....................................................... 215 255 320 294 287 965 1,245 1,526 1,573 1,567 Latin America: Argentina................................................ 29 22 18 18 27 79 47 52 52 58 Bahamas1.............................................. 391 419 206 307 315 662 633 760 992 516 Brazil.................................................... 35 64 78 125 160 172 230 409 523 418 Chile....................................................... 18 20 6 9 13 34 42 78 64 122 Colombia................................................ 7 9 18 22 13 39 40 44 51 49 Cuba....................................................... 1 * * * * 1 1 1 1 1 Mexico.................................................... 26 44 72 71 59 181 235 260 263 286 Panama.................................................. 18 13 14 19 21 85 120 178 187 195 Peru........................................................ 4 15 17 11 15 36 47 65 60 40 Uruguay.................................................. 7 2 3 2 2 4 5 6 5 6 Venezuela............................................... 21 31 45 36 49 92 134 136 171 189 Other L.A. republics............................. 45 51 45 60 63 95 134 172 172 182 Neth. Antilles and Surinam................. 10 6 5 6 6 13 12 12 16 15 Other Latin America............................. 4 22 37 59 50 34 214 158 136 159 Total................................................ 615 719 564 745 793 1,527 1,892 2,330 2,692 2,236 Asia: China, People’s Republic ol' (China 32 42 20 39 23 * 11 8 3 8 China, Rep. of (Taiwan)....................... 26 34 52 72 72 65 121 184 119 131 12 41 24 19 19 33 48 65 68 61 7 14 14 13 10 34 37 36 31 37 16 14 13 22 38 48 54 51 67 81 Israel....................................................... 19 25 31 39 40 31 38 38 37 53 Japan...................................................... 224 297 374 374 353 468 888 1,212 970 1,086 Korea.................................................. 21 37 38 45 66 67 105 109 124 123 16 17 9 19 28 59 73 87 86 108 5 6 7 7 10 23 28 31 43 33 152 178 273 401 430 206 239 264 313 309 Total................................................ 530 705 855 1,050 1,089 1,035 1,642 2,087 1,860 2,030 Africa: 32 10 35 12 6 16 9 9 13 16 South Africa........................................... 8 14 22 24 35 52 62 69 85 90 Zaire........................................................ 1 19 21 15 17 8 18 20 17 13 Other Africa........................................... 62 125 134 156 114 93 127 155 195 202 Total................................................ 104 168 212 206 172 170 216 253 310 321 Other countries: Australia................................................ 45 118 134 94 128 83 97 110 117 134 14 12 22 24 32 23 25 31 39 44 59 130 156 117 160 107 123 142 157 178 International and regional........................ * * 29 63 125 1 * 1 1 1 3,536 4,080 4,507 5,188 5,688 6,366 8,556 10,570 11,165 10,772 i Includes Bermuda through Dec. 1972. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts Note.—Reported by exporters, importers, and industrial and com- between U.S. companies and their foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. o MARCH 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1970—Sept........................ 2,786 2,885 157 720 620 180 63 586 144 284 73 58 Dec........................ 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar........................ 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June....................... 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept........................ 2,939 3,019 135 672 765 178 60 597 133 319 85 75 rvan 1 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—Mar..................... 3,093 3,141 129 713 737 175 60 665 137 359 81 85 June....................... 3,300 3,206 108 712 748 188 61 671 161 377 86 93 Sept........................ 3,448 3,187 128 695 757 177 63 662 132 390 89 96 Hap 1 / 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ 3,631 3,409 191 755 793 187 64 692 134 395 86 111 1973—Mar........................ 3,818 3,553 156 814 864 165 63 783 124 410 105 125 June........................ 3,833 3,622 179 818 819 146 65 813 130 413 108 131 Sept........................ 4,066 3,788 216 839 836 147 73 822 140 471 108 137 Dec......................... 3,946 3,857 290 782 890 145 79 816 128 342 115 142 1974—Mar........................ 3,863 4,045 368 756 927 194 81 796 123 469 119 147 June....................... 3,549 3,965 362 717 947 184 138 734 122 492 122 148 Sept.*..................... 3,341 4,084 369 720 992 181 145 779 118 529 118 133 % 1 Data on the 2 lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. OPEN MARKET RATES (Per cent per annum) Germany, Switzer­ Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks* day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money3 60-90 money 5 3 months money rate 3 months rates days 4 1973....................... 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974....................... 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 1974—Feb.............. 6.10 6.49 13.63 11.94 8.96 9.50 12.48 7.00 9.13 6.50 9.73 6.00 Mar............. 6.24 6.50 14.39 11.95 11.31 9.50 11.88 7.00 11.63 6.00 9.07 6.00 Apr............. 7.18 6.93 13.20 11.53 10.00 9.50 11.81 5.63 5.33 6.64 9.86 6.50 May............ 8,22 7.48 13.31 11.36 10.72 9.50 12.90 6.63 8.36 7.00 9.00 6.50 June............ 8.66 8.36 12.61 11.23 10.58 9.50 13.59 5.63 8.79 7.00 8.98 6.50 July............. 8.88 8.52 13.21 11.20 8.70 9.50 13.75 5.63 9.13 7.50 8.57 7.00 Aug............. 8.76 8.83 12.80 11.24 11.11 9.50 13.68 5.63 9.05 7.50 7.09 7.00 Sept............. 8.70 8.84 12.11 10.91 10.69 9.50 13.41 5.63 9.00 7.42 5.08 7.00 Oct.............. 8.67 8.56 11.95 10.93 10.81 9.50 13.06 5.63 8.88 7.38 7.81 7.00 Nov............. 7.84 7.86 12.07 10.98 7.70 9.50 12.40 5.63 7.20 6.72 7.00 7.00 Dec............. 7.29 7.44 12.91 10.99 7.23 9.50 11.88 5.13 8.25 6.69 6.96 7.00 1975—Jan.............. 6.65 6.82 11.93 10.59 8.40 9.30 11.20 5.13 7.54 6.60 6.18 7.00 Feb .......... 6.34 6.88 9.88 9.50 9.91 4.04 7.00 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see ‘‘International Finance,’* 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statisticst 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-72 AND A-73, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $29,201 million and $29,408 million, respectively, on Nov. 30, 1974, and unrealized paper profits and paper losses caused by changes in exchange $28,506 million and $28,619 million, respectively, on Dec. 31, 1974. rates, which are used to convert foreign currency values into equivalent dollar values. Note.—Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ CENTRAL BANK AND EXCHANGE RATES A 77 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Feb. 28, 1975 Rate as of Feb. 28, 1975 Country Country Per Month Per Month cent effective cent effective Argentina...................... 18.0 Feb. 1972 Italy................... 8.0 Dec. 1974 Austria........................... 6.50 May 1974 Japan.................. 9.0 Dec. 1973 Belgium......................... 8.25 Jan. 1975 Mexico............... 4.5 June 1942 Brazil............................. 18.0 Feb. 1972 Netherlands....... 6.0 Mar. 1975 Canada.......................... 8.25 Jan. 1975 Norway.............. 5.5 Mar. 1974 Denmark....................... 9.0 Jan. 1975 Sweden.............. 7.0 Aug. 1974 France........................... 11.0 Feb. 1975 Switzerland........ 5.0 Feb. 1975 Germany, Fed. Rep. of. 5.0 Mar. 1975 United Kingdom 10.5 Feb. 1975 Venezuela.......... 5.0 Oct. 1970 Note.—Rates shown are mainly those at which the central bank either Japan—Penalty rates (exceeding the basic rate shown) for borrowings discounts or makes advances against eligible commercial paper and/or from the central bank in excess of an individual bank’s quota; govt, securities for commercial banks or brokers. For countries with United Kingdom—The Bank’s minimum lending rate, which is the more than one rate applicable to such discounts or advances, the rate average rate of discount for Treasury bills established at the most recent shown is the one at which it is understood the central bank transacts tender plus one-half per cent rounded to the nearest one-quarter per cent the largest proportion of its credit operations. Other rates for some of above. these countries follow: Venezuela—2 per cent for rediscounts of certain agricultural paper, 4 Vi Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5y2 per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1971..................... 113.61 4.0009 2.0598 99.021 13.508 18.148 28.768 13.338 244.42 .16174 .28779 1972..................... 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973..................... 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974..................... 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1974—Feb........... 148.50 5.0022 2.4358 102.398 15.570 20.187 36.844 12.131 227.49 .15275 .34367 Mar.......... 148.55 5.1605 2.5040 102.877 16.031 20.742 38.211 12.415 234.06 .15687 .35454 148.41 5.3345 2.5686 103.356 16.496 20.541 39.594 12.711 238.86 .15720 .36001 May......... 148.44 5.5655 2.6559 103.916 17.012 20.540 40.635 12.841 241.37 .15808 .35847 June......... 148.34 5.5085 2.6366 103.481 16.754 20.408 39.603 12.735 239.02 .15379 .35340 July.......... 147.99 5.4973 2.6378 102.424 16.858 20.984 39.174 12.759 238.96 .15522 .34372 Aug.......... 148.24 5.3909 2.5815 102.053 16.547 20.912 38.197 12.525 234.56 .15269 .33082 Sept.......... 144.87 5.2975 2.5364 101.384 16.111 20.831 37.580 12.316 231.65 .15103 .33439 Oct........... 130.92 5.4068 2.5939 101.727 16.592 21.131 38.571 12.416 233.29 .14992 .33404 Nov.......... 131.10 5.5511 2.6529 101.280 16.997 21.384 39.836 12.397 232.52 .14996 .33325 Dec........... 131.72 5.7176 2.7158 101.192 17.315 22.109 40.816 12.352 232.94 .15179 .33288 1975—jan........... 132.95 5.9477 2.8190 100.526 17.816 22.893 42.292 12.300 236.23 .15504 .33370 Feb........... 134.80 6.0400 2.8753 99.957 18.064 23.390 42.981 12.550 239.58 .15678 .34294 Malaysia Mexico Nether­ New Norway Portugal South Spain Sweden Switzer­ United Period (dollar) (peso) lands Zealand (krone) (escudo) Africa (peseta) (krona) land Kingdom (guilder) (dollar) (rand) (franc) (pound) 1971..................... 32.989 8.0056 28.650 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972..................... 35.610 8.0000 31.153 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1973..................... 40.988 8.0000 35.977 136.04 17.406 4.1080 143.88 1.7178 22.970 31.700 245.10 1974..................... 41.682 8.0000 37.267 140.02 18.119 3.9506 146.98 1.7337 22.563 33.688 234.03 1974—Feb........... 40.489 8.0000 35.349 140.31 17.351 3.8567 148.76 1.6933 21.373 31.494 227.49 Mar.......... 41.152 8.0000 36.354 143.40 17.734 3.9519 148.88 1.6927 21.915 32.490 234.06 Apr........... 41.959 8.0000 37.416 145.12 18.170 4.0232 148.85 1.7080 22.730 33.044 238.86 42.155 8.0000 38.509 146.07 18.771 4.1036 148.78 1.7409 23.388 34.288 241.37 June......... 41.586 8.0000 37.757 145.29 18.410 4.0160 148.86 1.7450 22.885 33.449 239.02 July.......... 41.471 8.0000 38.043 145.15 18.519 3.9886 149.73 1.7525 22.861 33.739 238.96 Aug.......... 42.780 8.0000 37.419 143.73 18.246 3.9277 146.83 1.7466 22.597 33.509 234.56 Sept.......... 41.443 8.0000 36.870 139.64 17.993 3.8565 142.69 1.7339 22.333 33.371 231.65 Oct........... 41.560 8.0000 37.639 129.95 18.165 3.9246 142.75 1.7422 22.683 34.528 233.29 Nov.......... 43.075 8.0000 38.438 130.42 18.404 3.9911 143.88 1.7522 23.175 36.384 232.52 Dec.......... 42.431 8.0000 39.331 130.56 18.873 4.0400 144.70 1.7716 23.897 38.442 232.94 1975—Jan........... 43.359 8.0000 40.715 131.72 19.579 4.0855 145.05 1.7800 24.750 39.571 236.23 Feb........... 44.136 8.0000 41.582 133.30 19.977 4.1139 147.16 1.7784 25.149 40.450 239.58 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 GOLD RESERVES □ MARCH 1975 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) Esti­ Intl. Esti­ China, End of mated Mone­ United mated Algeria Argen­ Aus­ Aus­ Bel­ Canada Rep. of Den­ Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 791 82 64 85 1971. 41,160 4,732 10,206 26,220 192 90 259 729 1,544 792 80 64 85 1972. 44,890 5,830 10,487 28,575 208 152 281 792 1,638 834 87 69 92 1973. 49,850 6.478 11.652 31,720 231 169 311 881 1.781 927 97 77 103 1974—Jan... 6.478 11.652 231 169 312 882 1.781 927 97 77 103 Feb.., 6.478 11.652 231 169 312 882 1.781 927 97 77 103 Mar.. 49,840 6.478 11.652 31,710 231 169 312 882 1.781 927 97 77 103 Apr.. 6.478 11.652 231 169 312 882 1.781 927 97 77 103 May. 6.478 11.652 231 169 312 882 1.781 927 97 77 103 June. 49,835 6.478 11.652 31,705 231 169 312 882 1.781 927 97 77 103 July.. 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Aug.. 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Sept.. 49,830 6.478 11.652 31,700 231 169 312 882 1.781 927 97 76 103 Oct... 6.478 11.652 231 169 312 882 1.781 927 97 76 Nov.. 6.478 11.652 231 169 312 882 1.781 927 97 76 Dec.. '*49,195 6.478 11.652 ?3i j665 231 312 882 1.781 927 97 76 1975—Jan.?. 6.478 11,635 231 312 882 1.781 927 76 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi­ Nether­ period Fed. anon co lands Rep. of 1970.......................... 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971.......................... 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972.......................... 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973.......................... 4,261 4,966 148 293 159 173 3,483 891 120 388 103 196 2,294 1974—Jan................. 4,262 4,966 148 293 159 173 3,483 891 113 389 103 195 2,294 Feb................ 4,262 4,966 148 293 159 173 3,483 891 120 389 103 194 2,294 Mar............... 4,262 4,966 149 293 159 173 3,483 891 123 389 103 156 2,294 Apr................ 4,262 4,966 149 293 159 173 3,483 891 118 389 103 155 2,294 Mav............... 4,262 4,966 149 293 159 173 3,483 891 142 389 103 154 2,294 June.............. 4,262 4,966 150 293 159 173 3,483 891 130 389 103 154 2,294 July............... 4,262 4,966 150 293 158 173 3,483 891 130 389 105 154 2,294 Aug............... 4,262 4,966 150 293 158 173 3,483 891 130 389 107 154 2,294 Sept............... 4,262 4,966 150 293 158 173 3,483 891 130 389 103 154 2,294 Oct................. 4,262 4,966 150 293 158 173 3,483 891 138 389 103 154 2,294 Nov......... 4,262 4,966 150 293 158 173 3,483 891 138 389 103 2,294 Dec................ 4,262 4,966 150 158 173 3,483 891 148 389 103 2,294 1975—Jan ? ............ 4,262 4,966 158 3,483 891 140 389 103 2,294 United Bank End of Paki­ Portu­ Saudi South Spain Sweden Switzer­ Thai­ Turkey King­ Uru­ Vene­ for Intl. period stan gal Arabia Africa land land dom guay zuela Settle­ ments2 1970.......................... 54 902 119 666 498 200 2,732 92 126 1,349 162 384 -282 1971.......................... 55 921 108 410 498 200 2,909 82. 130 775 148 391 310 1972.......................... 60 1,021 117 681 541 217 3,158 89 136 800 133 425 218 1973.......................... 67 1,163 129 802 602 244 3,513 99 151 886 148 472 235 1974—Jan................. 67 1,167 129 793 602 244 3,513 99 151 886 148 472 271 Feb................ 67 1,171 129 783 602 244 3,513 99 151 886 148 472 277 Mar............... 67 1,176 129 780 602 244 3,513 99 151 886 148 472 274 Apr................ 67 1,180 129 780 602 244 3,513 99 151 886 148 472 271 May.............. 67 1,180 129 777 602 244 3,513 99 151 886 148 472 247 June.............. 67 1,180 129 781 602 244 3,513 99 151 886 148 472 259 July............... 67 1,180 129 788 602 244 3,513 99 151 886 148 472 259 Aug............... 67 1,180 129 778 602 244 3,513 99 151 886 148 472 255 Sept............... 67 1,180 129 778 602 244 3,513 99 151 886 148 472 259 Oct................ 67 1,180 129 786 602 244 3,513 99 151 886 148 472 271 Nov............... 67 1,180 129 774 602 244 3,513 99 151 886 148 472 251 Dec . . 67 1,180 129 771 244 3,513 99 151 886 472 250 1975_jan ? 67 764 244 3,513 99 472 265 1 Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank’s gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ countries. tries, and China Mainland. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BANK RESERVES AND RELATED ITEMS, 1974 \ 79 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 inks Reserves Borrowings New York City City of Chicago Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ >rrowquired sonal ings ings ings ngs 36,419 236 1,044 18 65 135 -44 17 -8 549 343 35,053 189 1,186 17 51 87 -19 18 -51 635 446 34,790 176 1,352 32 21 113 -61 65 43 689 485 35,771 158 1,714 50 19 114 69 41 -58 987 572 36,325 194 2,580 104 -20 772 29 20 -4 939 849 36,259 131 3,000 130 -26 1,303 -8 51 26 799 847 37,161 177 3,308 149 45 1,457 19 70 -12 848 933 36,851 178 3,351 165 -58 1,464 6 23 78 860 -004 36,885 191 3,287 139 133 1,662 20 17 -77 792 816 36,705 91 1,793 117 -49 502 -18 36 36 569 686 36,579 258 1,285 67 -8 257 38 14 90 566 448 36,602 339 703 32 132 80 5 18 39 323 282 34,958 472 1,039 35 106 30 81 676 363 35,268 388 1,210 31 80 140 -6 141 25 599 330 36,210 86 776 19 2 271 -47 44 -96 174 287 37,374 328 988 20 59 45 16 27 681 262 36,693 -83 1,182 13 -114 183 -12 -110 655 344 35,880 259 1,220 17 104 20 -57 15 733 467 35,351 124 998 18 -123 14 34 494 504 35,054 294 1,153 15 144 92 -23 56 -34 585 420 35,274 114 1,376 20 -37 257 -63 -42 711 408 34,645 206 1,251 16 70 -17 13 -24 780 458 34,515 118 912 19 -81 123 13 11 1 364 414 34,632 116 983 19 41 11 -8 66 -82 507 399 35,129 80 1,483 35 -41 333 -3 15 -36 679 456 34,605 169 1,713 43 10 31 40 21 -16 1,061 600 35,217 226 1,503 44 77 34 -9 189 -27 710 570 34,940 62 1,194 41 -73 108 4 53 6 663 370 35,927 329 1,816 46 78 107 -19 101 37 1,093 515 35,916 139 1,939 52 -12 69 70 4 -12 1,233 633 36,668 177 2,157 74 62 176 -47 17 -34 1,140 824 36,201 135 1,616 82 -57 134 41 14 10 822 646 36,470 176 1,977 94 83 506 -39 37 -63 731 703 36,487 129 3,090 113 -55 993 57 7 -9 1,131 959 36,170 179 3,606 114 32 1,449 -17 9 -10 1,081 ,067 36,054 225 3,054 133 -37 1,210 2 15 61 846 983 35,658 131 2,729 136 26 1,296 21 40 -67 629 764 36,461 247 3,223 140 31 1,385 -17 139 44 984 715 36,437 99 2,788 133 -8 1,221 41 17 -76 690 860 36,905 369 3,435 127 9 1,412 111 137 72 878 ,008 36,590 278 2,640 136 90 1,339 1 52 84 432 817 37,840 -16 3,175 150 -75 1,536 26 15 -74 786 838 37,302 115 3,641 156 17 1,538 -41 80 81 1,108 915 37,020 184 3,690 163 33 1,431 1 38 13 1,086 ,135 36,692 228 3,089 174 -7 1,420 9 24 54 644 ,001 36,823 113 3,041 160 20 1,431 8 24 -39 716 870 36,947 209 3,437 167 -32 1,447 -2 23 130 961 ,006 36,920 146 3,533 161 105 1,457 31 21 -98 951 ,104 36,918 321 3,906 152 -66 1,729 40 19 171 1,125 ,033 36,628 109 3,084 132 127 1,567 -35 20 -110 766 731 37,004 82 2,921 134 -150 1,517 15 16 90 740 648 36,872 74 3,531 141 80 1,782 12 10 -93 871 868 37,077 456 3,218 143 67 1,756 9 17 222 532 913 36,656 -55 2,245 132 -26 1,245 -20 10 -127 336 654 37,088 327 1,744 121 41 219 27 135 99 784 606 36,615 -159 1,322 108 -101 148 -12 2 -122 509 663 36,576 243 1,638 105 109 96 -9 11 42 730 801 36,672 323 1,125 78 54 68 32 105 425 632 36,335 144 1,097 70 -15 188 -29 30 40 480 399 36,785 27 1,367 64 -16 465 8 29 -87 495 378 36,459 310 1,479 63 69 243 27 87 814 422 36,678 283 1,070 51 141 226 4 -16 450 394 36,452 -159 648 35 -173 73 -36 26 -50 281 268 36,545 217 818 31 59 60 23 54 -39 417 287 36,416 429 662 29 137 72 52 89 333 257 972, F.R. Banks have been allowed to waive parallel the previous “Reserve city” and “Country” catej tively iencies for a transition period. Deficiencies al- (hence the series are continuous over time). $67 million; Q2, $58 million. Transition period Note.—Monthly and weekly data are averages of d ithin ;r, 1974. the month or week, respectively. , designation of banks as reserve city banks Borrowings at F.R. Banks: Based on closing figures. purposes has been based on size of bank (net Effective Apr. 19, 1973, the Board’s Regulation A, w Lendi than $400 million), as described in the Bulletin ing by Federal Reserve Banks, was revised to assist smal tegories shown here as “Large” and “All other” to meet the seasonal borrowing needs of their commun Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 BANK RESERVES AND RELATED ITEMS, 1974 □ MARCH 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (Averages of daily figures; in millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period, or week ending U.S. Govt, securities1 Special ury Gold Drawing cur­ Other stock Rights rency Total B r o o ig u u h t g ­ t ht r a e g p r u H u e n e r e d c m l e h d e r a n se t Loans Float a F s . s R et . s Total c a e c rt c if o i u ca n t t e st o i a n u n g t d ­ ­ 1974—Jan................................ 80,793 80,608 185 1,044 3,385 1,258 86,568 11,567 400 8,705 Feb............................... 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar.............................. 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 Apr............................... 81,567 80,873 694 1,714 2,295 1,160 86,907 11,567 400 8,807 May............................. 83,434 82,037 1,397 2,580 2,025 1,093 89,405 11.567 400 8,838 June............................. 82,812 81,859 953 3,000 2,114 1,106 89,254 11,567 400 8,877 July.............................. 84,313 83,496 817 3,308 2,267 1,343 91,554 11,567 400 8,905 Aug.............................. 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 Sept.............................. 84,384 84,049 335 3,287 2,239 1,349 91,617 11,567 400 8,992 Oct............................... 83,735 83,303 432 1,793 2,083 2,984 90,971 11,567 400 9,041 Nov.............................. 84,052 83,395 657 1,285 2,409 3,171 91,302 11,567 400 9,113 Dec............................... 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1973—Dec. 26....................... 80,087 79,242 845 1,039 4,684 1,229 87,260 11,567 400 8,672 1974—Jan. 2....................... 80,851 80,238 613 1,210 4,073 1,204 87,499 11,567 400 8,682 9....................... 80,880 80,671 209 776 4,399 1,232 87,397 11,567 400 8,683 16....................... 80,762 80,690 72 988 3,639 1,211 86,670 11,567 400 8,691 23....................... 80,309 80,202 107 1,182 3,208 1,271 86,036 11,567 400 8,723 30....................... 81,088 80,713 375 1,220 2,149 1,329 85,876 11,567 400 8,726 Feb. 6....................... 80,407 80,213 194 998 2,185 1,362 85,037 11,567 400 8,731 13....................... 80,678 80,451 227 1,153 2,268 1,462 85,645 11,567 400 8,747 20....................... 81,535 80,953 582 1,376 2,314 869 86,207 11,567 400 8,750 27....................... 80,577 80,577 1,251 2,409 828 85,136 11,567 400 8,756 Mar. 6....................... 80,203 80,203 912 2,010 878 84,072 11,567 400 8,758 13....................... 80,167 79,767 400 983 2,074 938 84,246 11,567 400 8,762 20....................... 80,813 80,303 510 1,483 1,889 961 85,262 11,567 400 8,768 27....................... 80,920 80,302 618 1,713 1,766 1,003 85,546 11,567 400 8,772 Apr. 3....................... 81,330 80,483 847 1,503 1,801 1,060 85,923 11,567 400 8,789 10................. 80,675 80,485 190 1,194 2,039 1,104 85,111 11,567 400 8,800 17....................... 81,606 80,651 955 1,816 2,646 1,134 87,332 11,567 400 8,803 24....................... 81,689 80,996 693 1,939 2,503 1,191 87,526 11,567 400 8,812 May 1....................... 82,731 81,637 1,094 2,157 1,919 1,292 88,365 11,567 400 8,822 8....................... 83,190 81,868 1,322 1,616 1,807 1,336 88,238 11,567 400 8,827 15....................... 83,626 81,951 1,675 1,977 1,908 1,248 89,065 11,567 400 8,830 22....................... 83,679 81,756 1,923 3,090 2,238 879 90,227 11,567 400 8,836 29....................... 83,162 82,418 744 3,606 1,905 900 89,737 11,567 400 8,856 June 5....................... 83,075 82,128 947 3,054 2,184 1,013 89,554 11,567 400 8,859 12....................... 81,267 80,814 453 2,729 2,007 1,036 87,184 11,567 400 8,862 19....................... 83,017 82,283 734 3,223 2,162 1,095 89,720 11,567 400 8,880 26....................... 83,815 82,049 1,766 2,788 2,055 1,160 90,068 11,567 400 8,891 July 3....................... 83,933 82,663 1,270 3,435 2,190 1,253 91,140 11,567 400 8,899 10....................... 83,990 83,007 983 2,640 2,951 1,259 91,157 11,567 400 8,898 17....................... 84,718 83,614 1,104 3,175 2,401 1,321 92,015 11,567 400 8,903 24....................... 84,429 84,153 276 3,641 2,027 1,397 91,722 11,567 400 8,907 31....................... 84,112 83,531 581 3,690 1,807 1,434 91,386 11,567 400 8,913 Aug. 7....................... 83,648 83,648 3,089 2,100 1,461 90,516 11,567 400 8,938 14....................... 83,486 83,486 3,041 2,018 1,524 90,286 11,567 400 8 953 21....................... 85,394 84,720 674 3,437 1,940 914 91,998 11,567 400 8,955 28....................... 85,176 84,646 530 3,533 1,845 1,145 92,086 11,567 400 8,961 Sept. 4....................... 85,304 85,061 243 3,906 '1,779 1,237 '92,540 11,567 400 8,973 11....................... 83,126 83,126 3,084 2,717 1,290 90,486 11,567 400 8,971 18....................... 83,791 83,222 569 2,921 2,535 1,323 90,876 11,567 400 8,974 25....................... 84,982 84,616 366 3,531 2,171 1,413 92,486 11,567 400 9,016 Oct. 2....................... 85,380 84,904 476 3,218 1,898 1,646 92,695 11,567 400 9,039 9....................... 84,041 83,480 561 2,245 2,137 2,047 91,006 11,567 400 9,027 16....................... 83,367 82,598 769 1,744 1,875 3,288 90,716 11,567 400 9,036 23....................... 83,472 83,472 1,322 2,553 3,396 90,958 11,567 400 9,042 30....................... 83,581 83,218 ........363*’ 1,638 1,895 3,386 90,767 11,567 400 9,054 Nov. 6....................... 83,662 83,217 445 1,125 2,086 3,466 90,658 11,567 400 9,080 13....................... 82,421 82,421 1,097 2,466 3,484 89,689 11,567 400 9,099 20....................... 83,959 83,480 479 1,367 3,018 2,967 91,667 11,567 400 9,118 27....................... 85,212 84,076 1,136 1,479 2,060 2,917 92,159 11,567 400 9,128 Dec. 4....................... 85,559 83,967 1,592 1,070 2,768 3,113 93,186 11,567 400 9,168 11....................... 85,445 84,925 520 648 2,545 3,053 92,238 11,603 400 9,163 18....................... 85,842 85,157 685 818 2,569 3,047 92,859 11,652 400 9,178 25....................... 88,242 85,761 2,481 662 2,285 3,141 95,124 11,652 400 9,194 1 Includes Federal agency issues. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign 2 Includes certain deposits of domestic nonmember banks and foreign- agency and branch deposits at F.R. Banks that are associated with marginal owned banking institutions held with member banks and redeposited in reserves are no longer reported. However, deposits voluntarily held by full with Federal Reserve Banks in connection with voluntary participa­ agencies and branches of foreign banks operating in the United States tion by nonmember institutions in the Federal Reserve System’s program as reserves and Euro-dollar liabilities are reported. of credit restraint. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BANK RESERVES AND RELATED ITEMS, 1974 A 81 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (Averages of daily figures; in millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank reserves, reserves Cur­ Treas­ with F.R. Banks Other Period, or week ending rency ury F.R. in cash lia­ cir­ hold­ bilities With Cur­ cula­ ings and F.R. rency tion Treas­ For­ Other2 capital Banks and Total* ury eign coin3 70,962 349 2,488 427 713 2,904 29,396 7,192 36,655 ...............................................1974—Jan. 70,411 342 2,972 293 682 2,932 28,574 6,601 35,242 ...........................................................Feb. 71,081 334 1,803 311 699 2,998 28,450 6,450 34,966 72,176 308 1,712 328 702 2,985 29,469 6,402 35,929 72,876 286 3,000 320 699 3,168 29,861 6,600 36,519 73,749 293 2,015 491 691 3,187 29,672 6,668 36,390 74,556 275 2,795 296 773 3,216 30,514 6,824 37,338 74,709 283 2,633 326 831 3,240 30,264 6,765 37,029 75,098 303 2,451 456 766 3,345 30,156 6,920 37,076 75,654 315 1,601 294 869 3,260 29,985 6,811 36,796 77,029 302 864 370 770 3,149 29,898 6,939 36,837 78,951 220 1,741 357 874 3,266 29,767 7,174 36,941 72,233 328 2,228 531 694 3,047 28,838 6,508 35,430 72,470 331 2,254 331 978 2,977 28,808 6,781 35,656 71,855 329 2,344 544 699 2,776 29,499 6,730 36,296 71,214 350 2,170 318 706 2,850 29,719 7,916 37,702 70,581 363 2,351 398 709 2,959 29,364 7,179 36,610 69,931 359 3,099 494 646 3,059 28,981 7,091 36,139 69,935 349 3,084 306 689 2,947 28,424 6,984 35,475 70,500 343 3,431 256 664 2,806 28,360 6,921 35,348 70,686 334 2,844 327 682 2,950 29,102 6,219 35,388 70,438 344 2,651 260 690 3,031 28,445 6,339 34,851 70,577 334 1,927 328 694 2,942 27,994 6,572 34,633 71,193 330 1,794 277 714 2,842 27,826 6,855 34,748 ...............................................................13 71,286 337 1,324 300 731 2,994 29,025 6,117 35,209 ...............................................................20 71,117 335 2,317 307 669 3,093 28,448 6,259 34,774 ...............................................................27 71,366 340 1,889 372 704 3,105 28,904 6,481 35,443 72,008 326 1,354 300 725 2,854 28,311 6,633 35,002 ...............................................................10 72,616 303 1,299 439 695 3,010 29,741 6,457 36,256 ...............................................................17 72,308 288 1,666 269 703 2,997 30,074 5,923 36,055 72,048 301 2,460 343 672 3,132 30,198 6,589 36,845 72,463 299 2,959 294 662 2,961 29,393 6,885 36,336 72,997 285 2,723 277 715 3,122 29,743 6,845 36,646 ...............................................................15 72,959 278 3,028 343 728 3,218 30,477 6,081 36,616 ...............................................................22 73,062 273 3,224 287 684 3,310 29,719 6,572 36,349 73,344 302 2,804 399 694 3,275 29,562 6,659 36,279 73,846 283 931 309 674 3,041 28,929 6,802 35,789 73,938 292 1,511 992 674 3,140 30,019 6,631 36,708 73,689 298 2,659 343 687 3,265 29,985 6,493 36,536 ...............................................................26 74,112 287 2,781 350 777 3,240 30,459 6,815 37,274 74,876 275 2,957 289 753 3,050 29,820 7,048 36,868 74,849 266 2,366 303 786 3,193 31,122 6,702 37,824 ...............................................................17 74,441 270 2,721 283 757 3,271 30,853 6,564 37,417 74,081 283 3,214 293 785 3,390 30,218 6,986 37,204 74,383 282 2,730 274 799 3,053 29,900 7,020 36,920 74,916 274 1,875 269 875 3,107 29,890 7,046 36,936 74,872 279 2,447 428 833 3,262 30,799 6,357 37,156 74,613 281 3,191 307 779 3,390 30,452 6,614 37,066 74,979 302 3,107 371 802 3,502 30,416 6,823 37,239 75,399 297 1,858 362 732 3,126 29,649 7,088 36,737 75,302 298 1,438 525 751 3,255 30,249 6,837 37,086 74,890 304 3,148 612 904 3,450 30,161 6,785 36,946 74,839 315 3,274 356 960 3,493 30,464 7,069 37,533 75,327 314 2,698 288 824 3,107 29,441 7,160 36,601 75,944 318 838 271 794 3,180 30,376 7,039 37,415 75,848 318 1,200 271 843 3,285 30,202 6,254 36,456 75,624 313 1,341 312 800 3,410 29,987 6,832 36,819 76,060 295 1,049 302 811 3,312 29,875 7,120 36,995 77,025 300 159 302 703 3,038 29,227 7,252 36,479 77,209 300 649 512 781 3,060 30,240 6,572 36,812 77,328 307 1,346 303 788 3,174 30,007 6,762 36,769 77,952 316 1,464 453 1,024 3,250 29,861 7,100 36,961 78,496 266 1,303 320 893 3,090 29,035 7,258 36,293 78,926 182 926 407 821 3,213 29,615 7,147 36,762 79,368 180 2,471 345 752 3,399 29,855 6,990 36,845 3 Based on close-of-business figures for reserve period 2 weeks previous lowed in 1974 were: Ql, $67 million; Q2, $58 million. Transition period to report date. ended after second quarter, 1974. 4 Beginning Nov. 9, 1972, F.R. Banks have been allowed to waive For other notes see opposite page, penalties in reserve deficiencies in a transition period. Deficiencies al- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 LOAN SALES BY BANKS □ MARCH 1975 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To select related institutions1 To all others except banks By type of loan By type of loan Date Total Total Commercial Real All Commercial All and estate other and other industrial industrial 1974—Jan. 2. 4.460 2,675 1,785 794 327 1.467 9. 4,487 2,700 1,787 790 325 1,465 16. 4,503 2,691 1,812 791 332 1,459 23. 4.301 2,508 1,793 790 340 1,450 30. 4,439 2,623 1,816 810 343 1.467 Feb. 6. 4,605 2,638 1,967 780 341 1,439 13. 4,729 2,687 2,042 389 333 1,056 20. 4,933 2,673 2,260 342 336 1,006 27. 4,992 2,748 2.244 414 337 1,077 Mar. 6. 4,939 2,754 2,185 414 339 1,075 13. 4,935 2.768 2,167 420 339 1 ,081 20. 4,840 2,787 2,053 419 340 1,079 27. 4,904 2.834 2,070 454 369 1 ,085 Apr. 3. 5,114 2,893 2,221 440 358 1,082 10. 5,063 2,911 2,152 443 356 1.087 17. 5,043 2.874 2,169 448 360 1.088 24. 5,386 3,080 2,306 482 393 1,089 May 1. 5,399 3,020 2,379 471 379 1,092 8. 5,536 3,069 2,467 475 375 1,100 15. 5,442 3,039 2,403 457 358 1,099 22. 5,567 3,084 2,483 455 357 1,098 29. 5,653 3,112 2.541 442 359 1,083 June 5. 5,648 2,986 2,662 469 384 1,085 12. 5,493 2,999 2,494 446 374 1,072 19. 5,380 2,888 2,492 450 391 1,059 26. 5,372 2,943 2,429 429 382 1,047 July 3. 5.460 2,947 2,513 479 439 1.040 10. 5,491 2,949 2.542 436 396 1.040 17. 5.501 2,973 2,528 420 381 1.039 24. 5,572 3,050 2,522 428 389 1.039 31. 5,411 2,905 2,506 481 440 1.041 Aug. 7. 5,419 2,846 2,573 422 401 1,021 14. 5.502 2,882 2,620 413 408 1,005 21. 5,438 2.834 2,604 432 434 998 28. 5,396 3,033 2,363 472 491 981 282 5.302 2.875 186 2,241 Sept. 4. 5,336 2.875 187 2.274 11. 5,348 2,902 185 2,261 18. 5,248 2,826 178 2.244 25. 5,282 2,830 178 2.274 Oct. 2. 5,277 2,867 179 2,231 9. 5,321 2,845 181 2,295 16. 5,181 2,806 178 2,197 23. 5,157 2,780 175 2,202 30. 5,192 2.768 178 2,246 Nov. 6. 5.168 2,756 182 2,230 13. 5.169 2,786 182 2,201 20. 5,077 2,779 186 2,112 27. 4,920 2,740 186 1,994 Dec. 4. 4,775 2,568 178 2,029 11. 4,765 2,592 182 1,991 18. 4,837 2,678 182 1,977 25. 4,901 2,821 180 1,900 1 To bank’s own foreign branches, nonconsolidated revision of data since Aug. 28; “Change in loans sold by nonbank affiliates of the bank, the bank’s holding com­ banks remaining in panel” should be —$132 million for pany (if not a bank), and nonconsolidated nonbank the total, —$200 million for commercial and industrial, subsidiaries of the holding company. and +$68 million for real estate and all other. The $132 2 Change in series. A comparison of the old and new million decline reflects the elimination of a previous misdata for Aug. 28, 1974, appears in the “Announcements” classification of $199 million in commercial and indus­ section of the Oct. 1974 Bulletin. However, the summary trial loans sold. of changes shown there should be revised to reflect the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1975 □ BUSINESS FINANCE A 83 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1972 1973 1974 Industry 1971 1972 1973 III IV Ii IV Total (170 corps.): Sales........................................ 334,957 371,946 442,254 89,550 100,194 102,932 109,967 108,370 120,985 126,889 142,950 144,775 Total revenue........................ 339,134 376,604 448,795 90,803 101,078 104,181 111,526 109,984 123,108 128,788 145,101 147,109 Profits before taxes............. 35,771 41,164 53,833 8,978 12,003 12,672 14,009 12,411 14,742 16,847 18,191 17,863 Profits after taxes................. 19,146 21,753 28,772 4,936 5,931 6,769 7,491 6,762 7,750 7,739 9,280 8,427 Memo: PAT unadj.2........ 18,020 21,233 28,804 4,490 5,894 6,754 7,385 6,732 7,930 7,626 9,210 8,487 Dividends............................... 10,104 10,538 11,513 2,525 2,877 2,639 2,715 2,767 3,393 2,906 2,928 3,075 Nondurable goods industries (86 corps.):3 Sales.......................................... 160,973 176,329 210,118 43,865 46,815 47,519 50,223 53,168 59,207 68,860 77,066 80,264 Total revenue........................ 163,448 178,915 213,904 44,689 47,023 48,259 51,191 54,098 60,357 70,142 78,528 81,880 Profits before taxes.............. 19,900 21,799 30,200 5,278 6,479 6,473 7,129 7,610 8,988 11,880 11,972 12,595 Profits after taxes.................. 10,490 11,154 15,538 2,852 2,946 3,390 3,667 4,018 4,463 5,056 5,728 5,464 Memo: PAT unadj.2........ 10,085 10,859 15,421 2,574 3,035 3,348 3,597 3,957 4,517 4,957 5,677 5,389 Dividends............................... 5,664 5,780 6,103 1,427 1,476 1,480 1,462 1,527 1,633 1,625 1,645 1,722 Durable goods industries (84 corps.):4 Sales.......................................... 173,985 195,618 232,136 45,685 53,379 55,413 59,744 55,202 61,778 58,029 65,884 64,511 Total revenue......................... 175,686 197,690 234,891 46,115 54,055 55,922 60,335 55,886 62,751 58,646 66,573 65,229 Profits before taxes............... 15,871 19,365 23,633 3,697 5,524 6,199 6,880 4,801 5,754 4,967 6,219 5,268 Profits after taxes................... 8,656 10,599 13,234 2,083 2,984 3,379 3,824 2,744 3,287 2,638 3,552 2,963 Memo: PAT unadj.2........ 7,935 10,374 13,383 1,916 2,859 3,406 3,788 2,775 3,413 2,669 3,533 3,098 Dividends................................ 4,440 4,758 5,410 1,097 1,401 1,159 1,253 1,240 1,760 1,281 1,283 1,353 Selected industries: Food and kindred prod. (28 corps.): Sales.......................................... 34,584 37,624 42,628 9,531 10,039 9,561 10,183 11,014 11,871 11,885 12,729 13,523 Total revenue......................... 35,090 38,091 43,198 9,665 10,115 9,711 10,348 11,201 11,938 12,110 12,996 13,937 Profits before taxes............... 3,372 3,573 3,957 940 960 897 962 1,031 1,067 1,046 1,190 1,289 Profits after taxes................... 1,714 1,845 2,063 486 490 474 499 r546 543 529 607 645 Memo: PAT unadj.2........ 1,644 1,805 2,074 492 452 453 501 r546 573 533 610 646 Dividends................................ 862 893 935 223 227 230 230 236 240 243 248 253 Chemical and allied prod. (22 corps.): Sales.......................................... 33,005 36,638 43,208 9,099 9,593 10,153 10,693 10,828 11,534 12,507 13,892 14,606 Total......................................... 33,388 37,053 43,784 9,196 9,723 10,264 10,849 10,968 11,704 12,664 14,066 14,778 Profits before taxes................ 4,123 4,853 6,266 1,216 1,280 1,487 1,606 1,599 1,572 1,856 2,293 2,194 Profits after taxes................... 2,290 2,672 3,504 683 669 835 886 901 883 1,044 1,247 1,223 Memo: PAT unadj.2........ 2,167 2,671 3,469 684 712 834 884 871 880 1,031 1,245 1,180 Dividends................................ 1,332 1,395 1,496 340 378 346 359 374 417 383 405 422 Petroleum refining (15 corps.): Sales.......................................... 68,534 74,662 93,505 18,298 19,925 20,477 21,689 23,586 27,752 36,196 41,339 42,726 Total revenue.......................... 69,903 76,133 95,722 18,837 19,845 20,892 22,258 23,988 28,584 37,006 42,237 43,638 Profits before taxes................ 10,835 11,461 17,494 2,628 3,717 3,514 3,884 4,371 5,724 8,296 7,564 8,339 Profits after taxes................... 5,624 5,562 8,550 1,398 1,509 1,760 1,899 2,230 2,662 3,098 3,349 3,181 Memo: PAT unadj.2........ 5,519 5,325 8,505 1,119 1,578 1,737 l,f“ 2,192 2 ,r~ 3,011 3,304 3,132 Dividends................................ 2,952 2,992 3,147 741 746 777 748 789 832 864 853 899 Primary metals and prod. (23 corps.): Sales.......................................... 31,441 34,359 42,400 8,525 9,099 9,635 10,784 10,602 11,379 11,( 13,976 14,285 Total revenue.......................... 31,808 34,797 43,104 8,629 9,253 9,733 10,891 10,764 11,715 12,045 14,171 14,504 Profits before taxes............... 1,517 1,969 3,221 413 589 618 885 799 919 1,232 1,586 1,796 Profits after taxes................... 969 1,195 1,966 274 302 383 542 480 561 589 927 1,033 Memo: PAT unadj.2........ 561 1,109 2,039 128 256 397 538 496 608 607 942 1,137 Dividends................................ 739 653 789 162 168 200 178 184 227 221 209 238 Machinery (27 corps.): Sales.......................................... 49,206 55,615 65,041 13,862 15,018 14,828 16,035 16,306 17,871 16,830 18,836 18,853 Total revenue.......................... 49,846 56,348 65,925 14,050 15,203 14,997 16,241 16,519 18,168 17,612 19,023 19,075 Profits before taxes............... 5,277 6,358 7,669 1,583 1,810 1,705 1,880 1,936 2,149 1,829 2,074 1,943 Profits after taxes................... 2,884 3,522 4,236 870 1,017 933 1,034 1.069 1,200 1,006 1,149 1,076 Memo: PAT unadj.2........ 2,560 3,388 4,208 865 902 931 1,020 1.070 1,188 996 1,137 1,096 Dividends................................ 1,450 1,497 1,606 375 375 389 401 407 410 441 441 475 Motor vehicles and equipment (9 corps.): Sales.......................................... 61,481 70,653 83,016 14,703 19,725 21,616 22,256 17,959 21,186 18,467 20,979 19,443 Total revenue.......................... 61,804 71,139 83,671 14,735 19,946 21,752 22,415 18,142 21,362 18,597 21,146 19,593 Profits before taxes............... 5,648 6,955 7,429 628 2,019 2,716 2,704 729 1,280 636 1,115 253 Profits after taxes................... 2,948 3,626 3,992 343 1,060 1,405 1,446 431 709 369 657 134 Memo: PAT unadj.2........ 2,952 3,640 4,078 337 1,091 1,429 1,436 450 763 361 648 147 Dividends................................ 1,433 1,762 2,063 365 599 369 473 404 817 380 382 386 1 Selected items have been revised so that figures for quarters now add to reports made to the Securities and Exchange Commission. Sales are net annual totals. of returns, allowances, and discounts, and exclude excise taxes paid di­ 2 Profits after taxes (PAT) as reported by the individual companies. In rectly by the company. Total revenue data include, in addition to sales, contrast to other profits data in the series, these figures reflect company income from nonmanufacturing operations and nonoperating income. variations in accounting treatment of special charges and credits. Profits are before dividend payments and have been adjusted to exclude 3 Includes 21 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not 4 Includes 25 corporations in groups not shown separately. related primarily to the current reporting period. Income taxes, (not shown) include Federal, State and local government, and foreign. Note—Data are obtained from published reports of companies and Previous series last published in June 1972 Bulletin, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman George W. Mitchell, Vice Chairman John E. Sheehan Jeffrey M. Bucher Robert C. Holland Henry C. Wallich Philip E. Coldwell OFFICE OF MANAGING DIRECTOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR FOR OPERATIONS Thomas J. O’Connell, Counsel to the RESEARCH AND ECONOMIC POLICY Chairman Daniel M. Doyle, Managing Director Robert Solomon, Adviser to the Board J. Charles Partee, Managing Director John M. Denkler, Deputy Managing Director Joseph R. Coyne, Assistant to the Board Stephen H. Axilrod, Adviser to the Board Gordon B. Grimwood, Assistant Director John S. Rippey, Assistant to the Board Samuel B. Chase, Jr., Adviser to the Board and Program Director for John J. Hart, Special Assistant to the Board Arthur L. Broida, Assistant to the Board W C ill o i n a t m in g W en . c y L P a l y a t n o n n in , g D irector of Equal Fr B an oa k r d O’Brien, Jr., Special Assistant to the Murray Altmann, Special Assistant to the Employment Opportunity Donald J. Winn, Special Assistant to the Board Brenton C. Leavitt, Program Director for Board Banking Structure DIVISION OF RESEARCH AND STATISTICS Peter E. Barn a, Program Director for Bank Holding Company Analysis LEGAL DIVISION Lyle E. Gramley, Director James L. Pierce, Associate Director John Nicoll, Deputy General Counsel Peter M. Keir, Adviser Baldwin B. Tuttle, Assistant General Counsel James L. Kichline, Adviser Charles R. M cNeill, Assistant to the Stanley J. Sigel, Adviser DIVISION OF FEDERAL RESERVE BANK General Counsel Joseph S. Zeisel, Adviser OPERATIONS A llen L. Raiken, Adviser James B. Eckert, Associate Adviser Gary M. W elsh, Adviser Edward C. Ettin, Associate Adviser Ronald G. Burke, Director Robert J. Lawrence, Associate Adviser James R. Kudlinski, Associate Director Eleanor J. Stockwell, Associate Adviser E. M aurice M cW hirter, Associate Director Walter A. Althausen, Assistant Director OFFICE OF SAVER AND CONSUMER AFFAIRS Robert M. Fisher, Assistant Adviser Harry A. Guinter, Assistant Director Frederic Solomon, Assistant to the J. Cortland G. Peret, Assistant Adviser Thomas E. Mead, Assistant Director Board and Director Stephen P. Taylor, Assistant Adviser P. D. Ring, Assistant Director Janet O. Hart, Deputy Director Helmut F. Wendel, Assistant Adviser William H. Wallace, Assistant Director Robert S. Plotkin, Assistant Director Levon H. Garabedian, Assistant Director A 84 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE Charles L. Hampton, Director Theodore E. A llison, Secretary Ralph C. Bryant, Director Glenn L. Cummins, Assistant Director Norm and R. V. Bernard, Assistant John E. Reynolds, Associate Director W arren N. Min ami, Assistant Director Secretary Robert F. Gemmill, Adviser Robert J. Zemel, Assistant Director Griffith L. Garwood, Assistant Secretary Reed J. Irvine, Adviser Helen B. Junz, Adviser DIVISION OF PERSONNEL DIVISION OF BANKING SUPERVISION Bernard Norwood, Adviser AND REGULATION Samuel Pizer, Adviser Keith D. Engstrom, Director George B. Henry, Associate Adviser Charles W. Wood, Assistant Director Brenton C. Leavitt, Director Charles J. Siegman, Assistant Adviser Frederick R. Dahl, Assistant Director Edwin M. Truman, Assistant Adviser OFFICE OF THE CONTROLLER Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director John Kakalec, Controller John T. M cClintock, Assistant Director Tyler E. W illiams, Jr., Assistant Controller Thomas A. Sidman, Assistant Director W illiam W. W iles, Assistant Director John E. Ryan, Adviser DIVISION OF ADMINISTRATIVE SERVICES W alter W. Kreimann, Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director A 85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 Federal Open Market Committee Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Ernest T. Baughman David P. Eastburn George W. Mitchell Jeffrey M. Bucher Robert C Holland John E. Sheehan Philip E. Coldwell Bruce K. Maclaury Henry C. W allich Robert P Mayo A rthur L. Broida, Secretary Robert Solom on, Economist M urray A ltm ann, Deputy Secretary (International Finance) Normand R. V. B ernard, Assistant Edw ard G. Boehne, Associate Economist Secretary Ralph C. B ryant, Associate Economist Thomas J. O’C onnell, General Counsel Sam uel B. Chase, Jr., Associate Economist Edw ard G. Guy, Deputy General Counsel Richard G. Davis, Associate Economist John N icoll, Assistant General Counsel Ralph T. G reen, Associate Economist J. C harles Partee, Senior Economist John K areken, Associate Economist Stephen H. A xilrod, Economist James L. Pierce, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist Lyle E. G ram ley, Economist K arl O. Scheld, Associate Economist (Domestic Business) Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council Thomas I. Storrs, fifth federal reserve district, President Donald E. Lasater, eighth federal reserve district, Vice President George B. Rockwell, first federal William F. Murray, seventh federal reserve district reserve district Ellmore C. Patterson, second federal George H. Dixon, ninth federal reserve district reserve district James F. Bodine, third federal Eugene H. Adams, tenth federal reserve district RESERVE DISTRICT Clair E. Fultz, fourth federal Ben F. Love, eleventh federal reserve district RESERVE DISTRICT Lawrence A. Merrigan, sixth federal Harold A. Rogers, twelfth federal reserve district RESERVE DISTRICT Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* ................. 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. McIntosh NEW YORK* 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs Buffalo .....................14240 Donald Nesbitt A. A. Maclnnes, Jr. PHILADELPHIA 19105 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes CLEVELAND* 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati ............. 45201 Phillip R. Shriver Robert E. Showalter Pittsburgh ............. 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND*................23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall George C. Rankin Baltimore ..................21203 James G. Harlow Jimmie R. Monhollon Charlotte ..................28201 Charles W. DeBell Stuart P. Fishburne Culpeper Communications Center ...................22701 J. Gordon Dickerson, Jr. ATLANTA ............... 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham .......... 35202 Frank P. Samford, Jr. Hiram J. Honea Jacksonville .......... 32203 James E. Lyons Edward C. Rainey Nashville ............... 37203 John C. Tune Jeffrey J. Wells New Orleans ........ 70161 Floyd W. Lewis George C. Guynn Miami Office ........ 33152 W. M. Davis CHICAGO* ............. 60690 Peter B. Clark Robert P. Mayo Robert H. Strotz Detroit .................... 48231 W. M. Defoe William C. Conrad ST. LOUIS ............... 63166 Edward J. Schnuck Darryl R. Francis Sam Cooper Eugene A. Leonard Little Rock ............ 72203 W. M. Pierce John F. Breen Louisville ............. 40201 James H. Davis Donald L. Henry Memphis ............... 38101 Jeanne L. Holley L. Terry Britt MINNEAPOLIS 55480 Bruce B. Dayton Bruce K. MacLaury James P. McFarland Clement A. Van Nice Helena .................... 59601 William A. Cordingley Howard L. Knous KANSAS CITY 64198 Robert T. Person George H. Clay Harold W. Andersen John T. Boysen Denver ................... 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City ,,, 73125 James G. Harlow, Jr. William G. Evans Omaha .................. 68102 Durward B. Varner Robert D. Hamilton DALLAS ................... 75222 John Lawrence Ernest T. Baughman Charles T. Beaird T. W. Plant El Paso ................... 79999 Herbert M. Schwartz Fredric W. Reed Houston ................. 77001 Thomas J. Barlow James L. Cauthen San Antonio .......... 78295 Pete J. Morales, Jr. Carl H. Moore SAN FRANCISCO ....94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi John B. Williams Los Angeles .......... 90051 Joseph R. Vaughan Gerald R. Kelly Portland ................. 97208 Loran L. Stewart William M. Brown Salt Lake City 84110 Sam Bennion A. Grant Holman Seattle .................... 98124 Malcolm T. Stamper Paul W. Cavan * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 Federal Reserve Board Publications Available from Publications Services, Division of Ad­ request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed­ of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) The Federal Reserve System—Purposes and 1964. 260 pp. $1.00 each; 10 or more to one Functions. 1974. 125pp. $1.00each; lOormore address, $.85 each. to one address, $.75 each. The Performance of Bank Holding Companies. Annual Report 1967. 29 pp. $.25 each; 10 or more to one address, Federal Reserve Bulletin. Monthly. $20.00 per $.20 each. year or $2.00 each in the United States and its The Federal Funds M arket. 1959. Ill pp. $1.00 possessions, and in Bolivia, Canada, Chile, Co­ each; 10 or more to one address, $.85 each. lombia, Costa Rica, Cuba, Dominican Republic, Trading in Federal Funds. 1965. 116 pp. $1.00 Ecuador, Guatemala, Haiti, Republic of Honduras, each; 10 or more to one address, $.85 each. Mexico, Nicaragua, Panama, Paraguay, Peru, El U.S. Treasury Advance Refunding, June Salvador, Uruguay, and Venezuela; 10 or more of 1960-July 1964. 1966. 65 pp. $.50 each; 10 or same issue to one address, $18.00 per year or $1.75 more to one address, $.40 each. each. Elsewhere, $24.00 per year or $2.50 each. Bank Credit-Card and Check-Credit Plans. 1968. Federal Reserve Chart Book on Financial and 102 pp. $1.00 each; 10 or more to one address, Business Statistics. Monthly. Subscription in­ $.85 each. cludes one issue of Historical Chart Book. $12.00 Interest Rate Expectations: Tests on Yield per year or $1.25 each in the United States and Spreads Among Short-Term Government Se­ the countries listed above; 10 or more of same issue curities. 1968. 83 pp. $.50 each; 10 or more to to one address, $1.00 each. Elsewhere, $15.00 per one address, $.40 each. year or $1.50 each. Survey of Financial Characteristics of Con­ Historical Chart Book. Issued annually in Sept. sumers. 1966. 166 pp. $1.00 each; 10 or more Subscription to monthly chart book includes one to one address, $.85 each. issue. $1.25 each in the United States and countries Survey of Changes in Family Finances. 1968. 321 listed above; 10 or more to one address, $1.00 pp. $1.00 each; 10 or more to one address, $.85 each. Elsewhere, $1.50 each. each. The Federal Reserve Act, as amended through De­ Report of the Joint Treasury-Federal Reserve cember 1971, with an appendix containing provi­ Study of the U.S. Government Securities sions of certain other statutes affecting the Federal M arket. 1969. 48 pp. $.25 each; 10 or more to Reserve System. 252 pp. $1.25. one address, $.20 each. Regulations of the Board of Governors of the Joint Treasury-Federal Reserve Study of The Federal Reserve System. Government Securities M arket: Staff Stud­ Published Interpretations of the Board of Gov­ ies—Part 1. 1970. 86 pp. $.50 each; 10 or more ernors, as of June 30, 1974. $2.50. to one address, $.40 each. Part 2. 1971. 153 pp. Supplement to Banking and M onetary Statis'tics. and Part 3. 1973. 131 pp. Each volume $1.00; Sec. 1. Banks and the Monetary System. 1962. 10 or more to one address, $.85 each. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 Open M arket Policies and Operating Proce­ pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. dures—Staff Studies. 1971. 218 pp. $2.00; 10 Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. or more to one address, $1.75 each. 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. Reappraisal of the Federal Reserve Discount 10. Member Bank Reserves and Related Items. Mechanism, Vol. 1. 1971. 276 pp. Vol. 2. 1971. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00 pp. $.35. Sec. 12. Money Rates and Securities each; 10 or more to one address, $2.50 each. Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. The Econometrics of Price Determination Con­ 24 pp. $.35. Sec. 15. International Finance. 1962. ference, October 30-31, 1970, Washington, D.C. 92 pp. $.65. Sec. 16 (New). Consumer Credit. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or 1965. 103 pp. $.65. more to one address, $4.50 each. Paper ed. $4.00 Industrial Production— 1971 Edition. 1972. 383 each; 10 or more to one address, $3.60 each. pp. $4.00 each; 10 or more to one address, $3.50 Federal Reserve Staff Study: Ways to M oderate each. Fluctuations in Housing Construction, Dec. Bank Mergers & the Regulatory Agencies: Ap­ 1972. 487 pp. $4.00 each; 10 or more to one plication of the Bank Merger Act of 1960. address, $3.60 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 89 Lending Functions of the Federal Reserve Measures of Security Credit. 12/70. Banks: A History, by Howard H. Hackley. 1973. M onetary Aggregates and Money M arket Con­ 271 pp. $3.50 each; 10 or more to one address, ditions in Open M arket Policy. 2/71. $3.00 each. Interest Rates, Credit Flows, and M onetary Ag­ Introduction to Flow of Funds. 1975. 64 pp. $.50 gregates Since 1964. 6/71. each; 10 or more to one address, $.40 each. Industrial Production—Revised and New Meas­ ures. 7/71. Revised Measures of M anufacturing Capacity STAFF ECONOMIC STUDIES Utilization. 10/71. Revision of Bank Credit Series. 12/71. Studies and papers on economic and financial subjects Assets and Liabilities of Foreign Branches of that are of general interest in the field of economic U.S. Banks. 2/72. research. Bank Debits, Deposits, and Deposit Turnover— Revised Series. 7/72. Summaries Only Printed in the Bulletin Yields on Newly Issued Corporate Bonds. 9/72. (Limited supply of mimeographed copies of full Recent Activities of Foreign Branches of U.S. text available upon request for single copies) Banks. 10/72. Revision of Consumer Credit Statistics. 10/72. The Impact of Holding Company Acquisitions on One-Bank Holding Companies Before the 1970 Aggregate Concentration in Banking, by Amendments. 12/72. Samuel H. Talley. Feb. 1974. 24 pp. Yields on Recently Offered Corporate Bonds. Operating Policies of Bank Holding Companies— 5/73. Part II: Nonbanking Subsidiaries, by Robert J. Federal Fiscal Policy, 1965-72. 6/73. Lawrence. Mar. 1974. 59 pp. Capacity Utilization in Major M aterials Indus­ Short-Run Variations in the Money Stock—Sea­ tries. 8/73. sonal or Cyclical? by Herbert M. Kaufman and Credit-Card and Check-Credit Plans at Commer­ Raymond E. Lombra. June 1974. 27 pp. cial Banks. 9/73. Household-Sector Economic Accounts, by David Rates on Consumer Instalm ent Loans. 9/73. F. Seiders. Jan. 1975. 84 pp. New Series for Large M anufacturing Corpora­ tions. 10/73. Printed in Full in the Bulletin Money Supply in the Conduct of M onetary Policy. 1/73. Staff Economic Studies shown in list below. U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. REPRINTS Recent Developments in the U.S. Balance of (Except for Staff Papers, Staff Economic Studies, and Payments. 4/74. some leading articles, most of the articles reprinted do Changes in Bank Lending Practices, 1973. 4/74. not exceed 12 pages.) Capacity Utilization for Major M aterials: Re­ Seasonal Factors Affecting Bank Reserves. 2/58. vised Measures. 4/74. Measures of Member Bank Reserves. 7/63. Open M arket Operations in 1973. 5/74. Research on Banking Structure and Perform­ Numerical Specifications of Financial Variables ance, Staff Economic Study by Tynan Smith. and Their Role in M onetary Policy. 5/74. 4/66. Banking and M onetary Statistics, 1973. Selected A Revised Index of M anufacturing Capacity, series of banking and monetary statistics for 1973 Staff Economic Study by Frank de Leeuw with only. 3/74 and 7/74. Frank E. Hopkins and Michael D. Sherman. 11/66. Inflation and Stagnation in Major Foreign In­ U.S. International Transactions: Trends in dustrial Countries. 10/74. 1960-67. 4/68. Revision of the Money Stock Measures and Mem­ Euro-Dollars: A Changing M arket. 10/69. ber Bank Deposits. 12/74. Recent Changes in Structure of Commercial Changes in Time and Savings Deposits at Com­ Banking. 3/70. mercial Banks, April-July 1974. 1/75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 Index to Statistical Tables References are to pages A-4 through A-83 although the prefix “A” is omitted in this index (For list of tables published periodically, but not monthly, see page A-3) ACCEPTANCES, bankers, 11, 27, 29 DEBITS to deposit accounts, 13 Agricultural loans of commercial banks, 18, 20 Debt (See specific types of debt or securities) Assets and liabilities (See also Foreigners): Demand deposits: Banks, by classes, 16, 18, 19, 20, 32 Adjusted, commercial banks, 13, 15, 19 Federal Reserve Banks, 12 Banks, by classes, 16, 19, 22, 23 Nonfinancial corporations, current, 43 Ownership by individuals, partnerships, and Automobiles: corporations, 26 Consumer instalment credit, 47, 48, 49 Subject to reserve requirements, 15 Production index, 50, 51 Turnover, 13 Deposits (See also specific types of deposits): BANK credit proxy, 15 Accumulated at commercial banks for payment of Bankers balances, 18,' 19, 22 personal loans, 26 (See also Foreigners, claims on, and liabilities to) Banks, by classes, 16, 19, 22, 23, 32 Banking and monetary statistics for 1974, 79-82 Federal Reserve Banks, 12, 74 Banks for cooperatives, 40 Subject to reserve requirements, 15 Bonds (See also U.S. Govt, securities): Discount rates (See Interest rates) New issues, 40, 41, 42 Discounts and advances by Reserve Banks (See Loans) Yields and prices, 30, 31 Dividends, corporate, 43, 83 Branch banks: Assets, foreign branches of U.S. banks, 72 EMPLOYMENT, 52, 54 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 24, 73 FARM mortgage loans, 44 Brokerage balances, 71 Federal agency obligations, 11, 12, 13 Business expenditures on new plant and equipment, 43 Federal finance: Business indexes, 52 Receipts and outlays, 34, 35 Business loans (See Commercial and industrial loans) Treasury operating balance, 34 Federal funds, 7, 18, 20, 23, 29 CAPACITY utilization, 52 Federal home loan banks, 39, 40 Capital accounts: Federal Home Loan Mortgage Corporation, 39, 44, 45 Banks, by classes, 16, 19, 24 Federal Housing Administration, 44, 45, 46 Federal Reserve Banks, 12 Federal intermediate credit banks, 39, 40 Central banks, 77, 78 Federal land banks, 39, 40, 44 Certificates of deposit, 24 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 15, 18, 27, 82 Condition statement, 12 Weekly reporting banks, 20-24, 25 U.S. Govt, securities held, 4, 12, 13, 36, 37, 80 Commercial banks: Federal Reserve credit, 4, 6, 12, 13, 79, 80 Assets and liabilities, 15, 16, 18, 19, 20 Federal Reserve notes, 12 Consumer loans held, by type, 47 Federally sponsored credit agencies, 39, 40 Deposits at, for payment of personal loans, 26 Finance companies: Loans sold outright, 27, 82 Loans, 20, 48, 49 Number, by classes, 16 Paper, 27, 29 Real estate mortgages held, by type of holder and prop­ Financial institutions, loans to, 18, 20 erty, 44^6 Float, 4, 80 Commercial paper, 27, 29 Flow of funds, 58, 59 Condition statements (See Assets and liabilities) Foreign: Construction, 52, 53 Currency operations, 11, 12 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 23, 74, 81 Instalment credit, 47, 48, 49 Exchange rates, 77 Noninstalment credit, 47 Trade, 61 Consumer price indexes, 52, 55 Foreigners: Consumption expenditures, 56, 57 Claims on, 68, 69, 70, 74, 75, 76 Corporations: Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Profits, taxes, and dividends, 43 Sales, revenue, profits, and dividends GOLD: of large manufacturing corporations, 83 Certificates, 12 Security issues, 41, 42 Earmarked, 74 Security yields and prices, 30, 31 Net purchases by United States, 62 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 78 Currency and coin, 5, 9, 18, 81 Stock, 4, 61, 80 Currency in circulation, 5, 14, 81 Government National Mortgage Assn., 44 Customer credit, stock market, 31, 32 Gross national product, 56, 57 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 91 References are to pages A-4 through A-83 although the prefix “A” is omitted in this index HOUSING permits, 52 REAL estate loans: Housing starts, 53 Banks, by classes, 18, 20, 32, 44 Mortgage yields, 45, 46 INCOME, national and personal, 56, 57 Type of holder and property Industrial production index, 50, 51, 52 mortgaged, 44-A6 Instalment loans, 47, 48, 49 Reserve position, basic, member banks, 7 Insurance companies, 33, 36, 37, 44, 46 Reserve requirements, member banks, 9 Insured commercial banks, 16, 18, 19, 26 Reserves: Interbank deposits, 16, 22 Central banks and govts., 78 Interest rates: Commercial banks, 19, 22, 24 Bond and stock yields, 30 Federal Reserve Banks, 12 Business loans by banks, 28 Member banks, 5, 6, 15, 19, 79, 81 Federal Reserve Banks, 8 U.S. reserve assets, 61 Foreign countries, 76, 77 Residential mortgage loans, 45, 46 Money market rates, 29 Retail credit, 47, 48, 49 Mortgage yields, 45, 46 Retail sales, 52 Prime rate, commercial banks, 28 Time and savings deposits, maximum rates, 10 SALES, revenue, profits, and dividends of large International capital transactions of U.S., 63-76 manufacturing corporations, 83 International institutions, 62, 77, 78 Saving: Inventories, 56 Flow of funds series, 58, 59 Investment companies, issues and assets, 42 National income series, 56, 57 Investments (See also specific types of investments): Savings and loan assns., 33, 37, 44, 46 Banks, by classes, 16, 18, 20, 21, 32 Savings deposits (See Time deposits) Commercial banks, 15 Savings institutions, principal assets, 32, 33 Federal Reserve Banks, 12, 13 Securities (See also U.S. Govt, securities): Life insurance companies, 33 Federally sponsored agencies, 39, 40 Savings and loan assns., 33 International transactions, 70, 71 New issues, 40, 41, 42 LABOR force, 54 Yields and prices, 30, 31 Life insurance companies (See Insurance companies) Special Drawing Rights, 4, 12, 60, 61 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 16, 18, 20, 32 Deposits, 19, 22 Commercial banks, 15, 16, 18, 20, 25, 27, 28, 82 Holdings of U.S. Govt, securities, 36, 37 Federal Reserve Banks, 4, 6, 8, 12, 13, 79, 80 New security issues, 40, 41 Insurance companies, 33, 46 Ownership of securities of, 18, 21, 32 Insured or guaranteed by U.S., 44, 45, 46 Yields and prices of securities, 30, 31 Savings and loan assns., 33 State member banks, 17, 26 Stock market credit, 31, 32 MANUFACTURERS: Stocks (See also Securities): Capacity utilization, 52 New issues, 41, 42 Production index, 51, 52 Yields and prices, 30, 31 Margin requirements, 10 Member banks: TAX receipts, Federal, 35 Assets and liabilities, by classes, 16, 18, 19 Time deposits, 10, 15, 16, 19, 23, 24 Borrowings at Federal Reserve Banks, 6, 12, 79 Treasury currency, Treasury cash, 4, 5, 80, 81 Number, by classes, 16 Treasury deposits, 5, 12, 34, 81 Reserve position, basic, 7 Treasury operating balance, 34 Reserve requirements, 9 Reserves and related items, 4, 6, 15, 80 UNEMPLOYMENT, 54 Mining, production index, 51 U.S. balance of payments, 60 Mobile home shipments, 53 U.S. Govt, balances: Money market rates (See Interest rates) Commercial bank holdings, 19, 23 Money stock and related data, 14 Member bank holdings, 15 Mortgages (See Real estate loans and Residential mortgage Treasury deposits at Reserve Banks, 5, 12, 34, 81 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 16, 18, 21, 32, 36, 37 Mutual savings banks, 23, 32, 36, 37, 44, 46 Dealer transactions, positions, and financing, 38 Federal Reserve Bank holdings, 4, 12, 13, 36, 37, 80 NATIONAL banks, 16, 26 Foreign and international holdings, 12, 68, 70, 74 National defense expenditures, 35 International transactions, 68, 70 National income, 56, 57 New issues, gross proceeds, 41 Nonmember banks, 17, 18, 19, 26 Open market transactions, 11 Outstanding, by type of security, 36, 37 OPEN market transactions, 11 Ownership, 36, 37 Yields and prices, 30, 31 PAYROLLS, manufacturing index, 52 Utilities, production index, 51 Personal income, 57 Prices: VETERANS Administration, 44, 45, 46 Consumer and wholesale commodity, 52, 55 Security, 31 Prime rate, commercial banks, 28 WEEKLY reporting banks, 20-24 Production, 50, 51, 52 Profits, corporate, 43, 83 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve System B o u n d a ries o f F ed eral R e serv e D istricts an d T h e ir B ra n c h T e rrito rie s Minneapolis^, C hicago j OmaJui* HasfiviU* Oklahoma Citjf' tufaa. Dallas Antmioi Pram ty UM Qaivtn, Cart LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facilities Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis